In a bid to safe a presence in Asia’s thriving crypto market, the U.S.-based crypto alternate Crypto.com has formally utilized for a license from the Hong Kong Securities and Futures Commission (SFC). With Hong Kong bracing for tighter laws within the crypto area, Crypto.com is gearing up for robust regulatory compliance.
Crypto.com Applies For Hong Kong License
According to Hong Kong SFC’s official website, the appliance by Crypto.com was made on Friday, February 9. The transfer aligns with the SFC’s stringent laws geared toward bolstering investor safety whereas fostering Hong Kong’s emergence as a crypto hub.
With this software, Crypto.com joins a listing of 17 contenders vying for regulatory approval, together with outstanding trade gamers corresponding to Bybit, Bullish, OKX, and VAEX, as indicated by the SFC’s official web site itemizing. The regulatory physique has imposed a agency deadline of February twenty ninth for exchanges to use for a digital asset buying and selling platform (VATP) license or face potential closure by May thirty first.
Presently, solely two platforms, OSL and HashKey Exchange, have been granted approval to cater to retail buyers in Hong Kong. While 18 different purposes are at present beneath overview, Crypto.com’s strategic transfer underscores ongoing trade curiosity in tapping into the area’s burgeoning crypto panorama.
Also Read: MiCA Regulation: How Will EU’s Regulatory Regime Impact Stablecoins?
Hong Kong SFC’s Stance On Crypto Regulation
The SFC’s uncompromising stance is obvious that unlicensed exchanges working inside Hong Kong’s jurisdiction will likely be swiftly shut down. To safeguard buyers, the regulatory authority has urged people to confirm the licensing standing of their chosen platforms and take into account migrating accounts to licensed counterparts forward of the looming May thirty first deadline.
Nevertheless, the SFC has cautioned that even submitting an software doesn’t assure approval. Thus, the destiny of Crypto.com’s bid, together with others within the pipeline, stays unsure, casting a veil of anticipation over the regulatory panorama in Hong Kong’s crypto sphere.
As the trade awaits additional developments, stakeholders carefully monitor the end result of Crypto.com’s software and its potential implications for the broader crypto ecosystem in Asia and past.
Also Read: South Korea Strengthens Crypto Exchange Regulations, What’s Next?
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