Hong Kong is solidifying its position as a global digital asset hub by granting licenses to four new cryptocurrency exchanges.
Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology are the latest platforms to receive regulatory approval from the Securities and Futures Commission (SFC), bringing the total number of licensed virtual asset trading platforms (VATPs) in the city to seven.
These approvals, announced amidst a significant surge in Bitcoin’s price, reflect Hong Kong’s commitment to bolstering its competitiveness in the digital asset space, and signal a strategic approach to balance innovation with investor protection.
The SFC has emphasized a “swift licensing process,” ensuring these new platforms meet stringent regulatory standards, while expediting their entry into the market.
According to Eric Yip, SFC executive director of intermediaries, “We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.”
The timing of these approvals is particularly noteworthy, with Bitcoin’s value soaring over 60% in the past six months, even crossing the $100,000 threshold for the first time, a milestone which has underscored the need for well-regulated platforms.
While the SFC has granted licenses, these new exchanges must complete additional steps before fully commencing operations.
This includes thorough checks for vulnerabilities and independent testing to ensure they adhere to the highest standards of security and compliance.
Thousand Whales Technology, the operator of the EX.IO trading platform, is particularly notable as it is backed by Valuable Capital Group, a brokerage owned by Sina Corporation, which also operates China’s popular social media site Weibo.
This highlights the growing connections between traditional finance and the digital asset space.
These four newly licensed exchanges were part of a larger group of nearly 30 firms that applied for VATP licenses in 2024.
However, some notable platforms, such as OKX and HTX, withdrew their applications due to ongoing regulatory concerns, further indicating the need for a robust and sustainable regulatory framework for the region.
Hong Kong has previously licensed HashKey, OSL, and HKVAX, and earlier this year became the first in Asia to launch exchange-traded funds (ETFs) for spot Bitcoin and Ether, outpacing the United States.
However, Hong Kong has encountered difficulties in regulating over-the-counter (OTC) crypto trading.
Now the city is adjusting its regulatory oversight approach based on recent industry feedback.
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