Bybit applies for a virtual asset trading license in Hong Kong.

Bybit is sought by Spark Fintech Limited for VATP license in Hong Kong. Hong Kong's favorable regulatory environment contrasts with China's crackdown on crypto. Harvest fund management space bitcoin ETF app shows Hong Kong's growing crypto influence.

Bybit, the popular cryptocurrency exchange, has officially applied for a license to operate as a “virtual asset trading platform” in Hong Kong. The application was filed on Wednesday by Spark Fintech Limited, according to Hong Kong Securities and Futures Commission records.

The move comes amid a regulatory landscape that separates Hong Kong from neighboring mainland China. As seen with the crypto licensing system launched in June 2023, Baybit's strategic choice is in line with Hong Kong's welcoming approach to crypto companies.

Hong Kong has emerged as a crypto hub in Asia.

Unlike the widespread crackdown on crypto activities in mainland China, Hong Kong has emerged as a favorable destination for crypto businesses. Baybit recognizes the city's strategic advantages, citing its established financial infrastructure and prime location.

The acquisition of the Virtual Asset Trading Platform (VATP) license in Hong Kong marks a significant step for ByBit in positioning itself to serve institutional clients in the Asia Pacific region.

Hong Kong established its crypto licensing system in June 2023, allowing licensed exchanges to offer retail trading services. Bybit's application ranks among the 14 crypto firms currently under official review by the financial regulator. In particular, OKX, another popular crypto exchange, filed its application on November 16.

In addition to virtual asset trading licenses, Hong Kong regulators are paving the way for crypto exchange-traded funds (ETFs). The Securities and Futures Commission, along with the Hong Kong Monetary Authority, has reviewed existing policies, which will see the city's expansion of crypto-financial products.

The Hong Kong arm of Harvest Fund Management, a major Chinese asset manager, has already filed for a Bitcoin ETF position in Hong Kong.

Bibit's bold move to secure the VATP license highlights Hong Kong's growing importance in the crypto space. With ongoing regulatory developments, the Asia Pacific region is witnessing a dynamic change in its crypto landscape with Hong Kong at the forefront of this evolution.