Crypto.com wants a Hong Kong license
Crypto.com will be subject to Hong Kong licensing at the time of the deregulation. Hong Kong's SFC has emphasized speedy closures of unlicensed exchanges, stressing investor protection. The outcome of the Crypto.com application remains uncertain.
To establish a strong foothold in Asia's growing crypto market, Crypto.com has applied for approval from Hong Kong's Securities and Futures Commission (SFC).
The move comes amid tight regulation in Hong Kong's crypto sector and shows the exchange's commitment to compliance and expansion.
Crypto.com Hong Kong license application
Crypto.com's application, filed on Friday, February 9, is in line with the SFC's efforts to improve investor protection and regulate the growing crypto industry.
Crypto.com joins a list of 17 competitors seeking regulatory approval, including prominent players such as Bybit, Bullish and OKX. Under the tight deadline of February 29 set by the SFC, exchanges have until May 31 to apply for a Virtual Asset Trading Platform (VATP) license to avoid closure.
According to information currently available on the official website of the Securities and Futures Commission, two platforms, OSL and HashKey Exchange, hold SFC licenses to serve retail investors in Hong Kong. However, with 18 apps under review, Crypto.com's strategic move highlights the industry's continued need to tap into the region's crypto landscape.
Hong Kong SFC's position on crypto regulation
The SFC's unwavering stance emphasizes that unlicensed exchanges operating in Hong Kong territory will be swiftly shut down. To protect investors, the regulatory authority urges individuals to check the licensing status of their chosen platforms and consider transferring accounts to licensed counterparts.
However, it is important to note that even submitting an application does not guarantee acceptance. The fate of Crypto.com's bid, along with others in the pipeline, remains uncertain, keeping the regulatory landscape in Hong Kong's cryptosphere intact.
The crypto industry expects further developments as stakeholders monitor the results of the Crypto.com application and its impact on the wider ecosystem in Asia and beyond.
By navigating the regulatory landscape and pursuing compliance, Crypto.com aims to secure its position in Hong Kong's evolving crypto market. As the industry evolves and regulatory frameworks take shape, exchanges must meet changing standards, protect investors and ensure the stability of the crypto ecosystem.
