Bybit seeks VATP license for crypto expansion in Hong Kong
Bybit cryptocurrency exchange has applied for a Virtual State Trading Operator (VATP) license with the Hong Kong Securities and Exchange Commission (SFC).
According to the SFC website, the exchange applied for the license on January 31 through Spark Fintech Limited. The financial regulator is reviewing 14 similar VATP applications, including submissions from crypto exchange OKX.
Only two crypto exchanges in Hong Kong licensed by the SFC are OSL Exchange, which was licensed on December 15, 2020, and HashKey Exchange, which was licensed on November 9, 2022.
A VATP license allows Hong Kong-based firms to serve retail clients, while a Virtual Asset Service Provider (VASP) license allows firms to serve professional investors. Under Hong Kong law, investors must hold portfolios worth at least eight million Hong Kong dollars ($1.03 million) to qualify for professional investor status.
Related: Hong Kong sets insurance requirement for licensed crypto exchange to 50%
Hong Kong's crypto hub ambitions
Hong Kong has emerged as a leading destination for crypto companies by 2023, thanks to the city-state's pro-crypto regulatory approach, which counters China's crackdown on digital assets. The SFC created more crypto-specific regulations in 2023, allowing both institutional and retail investors to participate in the crypto market.
Hong Kong was previously open to crypto exchange-traded fund (ETF) applications on December 22, with the SFC confirming its readiness to accept applications along with the Hong Kong Monetary Authority (HKMA), the city's de facto central bank.
Hong Kong has emerged as a leading destination for crypto companies by 2023, thanks to the city-state's pro-crypto regulatory approach, which counters China's crackdown on digital assets. The SFC created more crypto-specific regulations in 2023, allowing both institutional and retail investors to participate in the crypto market.
Other companies are offering futures-based crypto ETFs in Hong Kong. Samsung Asset Management launched the Samsung Bitcoin Futures ETF in January 2023 and said it “doesn't rule out exploring the possibility of launching a spot ETF.”
Related: Hong Kong SFC Accepts First Place Bitcoin ETF Application
