11 crypto exchanges in Hong Kong ‘deemed to be licensed’, paving way for first approvals since 2022
- The SFC updated the exchanges’ status on its website, while the situation of six operators remains unknown, after several China-linked exchanges pulled out
- A Shenzhen regulator reiterated that cross-border crypto activity is illegal, as a ban on serving mainland customers dents interest in Hong Kong’s scheme
The Hong Kong Securities and Futures Commission has granted initial approval to 11 cryptocurrency exchanges to continue operating in the city, in the first step towards granting the first virtual asset trading platform (VATP) licences since 2022.
Crypto.com, which was founded in Hong Kong and now operates out of Singapore, is the largest of the exchanges “deemed to be licensed”. The city currently has just two exchanges approved to serve retail customers, with HashKey being the last to get a licence in 2022 under the previous voluntary scheme.
Under the new regulations passed last year, the deeming arrangement is required for exchanges to continue operating in the city as they await full approval of their licences past June 1, by which point exchanges not seeking a licence were required to cease operations.
Crypto.com is the only exchange in the top 20 by 24-hour trading volume, as measured by CoinGecko, that is still seeking a licence in Hong Kong. The next largest exchange deemed to be licensed is Bullish, which is incorporated in Gibraltar but also operates out of Singapore and New York.
06:54
Is cryptocurrency too risky for China?
Michael Lau, global head of sales at Bullish, called Hong Kong “an important jurisdiction as a top-tier financial hub” for the company.
