Hong Kong Issues License to Four New Exchanges Amid Crypto Hub Push

The Hong Kong securities regulatory body issues official licenses to four new crypto exchanges, giving them the nod to legally operate in the region. In an updated list published by the Hong Kong Securities and Futures Commission (SFC), four new exchanges have received regulatory clearance to operate in the city. The latest licensing round takes the total number of crypto exchanges in Hong Kong to seven. Notably, the Hong Kong SFC granted the virtual asset trading platform (VATP) license to Accumulus Global Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI). Hong Kong Expands Its Crypto Reach The approval followed an earlier commitment from the SCF. The regulators disclosed in October that they would approve some of the 15 pending applications. The newly approved firms join HaskKey, HKVAZ, and OSL Digital Services as the only licensed exchanges in the region. Notably, several exchanges, such as OKX and HTX, retracted their applications, citing unfavorable regulatory requirements. Meanwhile, the new VATP license receivers will confine their offerings to a limited scope until the SCF completes a full rectification action. The regulator noted it would further assess the firms and administer the vulnerability and penetration tests. According to Eric Yip, SFC’s executive director of intermediaries, the move aligns with Hong Kong’s innovation endgame. The director stated that SCF aims to allow retail investors access to digital asset innovation while protecting their interests. Hong Kong’s Crypto Hub Push The latest development is part of Hong Kong's broader ploy to become a global cryptocurrency hub. The region has created an environment conducive to digital asset growth, aiming to attract the innovation amid an initial Western skepticism. This quest led to the approval and launch of the Bitcoin and Ethereum spot exchange-traded funds (ETFs) earlier in the year. Interestingly, Hong Kong’s crypto support came despite the crypto ban on the Chinese mainland. Moreover, Hong Kong’s crypto-friendly stance encouraged ZA Bank, the largest virtual bank in the state, to offer cryptocurrencies to retail customers. The bank announced in November that its over 800,000 users can now buy Bitcoin and Ethereum through its mobile application.