In a bid to safe a presence in Asia’s thriving crypto market, the U.S.-based crypto change Crypto.com has formally utilized for a license from the Hong Kong Securities and Futures Fee (SFC). With Hong Kong bracing for tighter rules within the crypto area, Crypto.com is gearing up for powerful regulatory compliance.
Crypto.com Applies For Hong Kong License
In line with Hong Kong SFC’s official website, the applying by Crypto.com was made on Friday, February 9. The transfer aligns with the SFC’s stringent rules aimed 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 distinguished business gamers similar 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 Might thirty first.
Presently, solely two platforms, OSL and HashKey Exchange, have been granted approval to cater to retail traders in Hong Kong. Whereas 18 different purposes are at the moment underneath evaluate, Crypto.com’s strategic transfer underscores ongoing business curiosity in tapping into the area’s burgeoning crypto panorama.
Additionally Learn: MiCA Regulation: How Will EU’s Regulatory Regime Impact Stablecoins?
Hong Kong SFC’s Stance On Crypto Regulation
The SFC’s uncompromising stance is clear that unlicensed exchanges working inside Hong Kong’s jurisdiction will likely be swiftly shut down. To safeguard traders, the regulatory authority has urged people to confirm the licensing standing of their chosen platforms and contemplate migrating accounts to licensed counterparts forward of the looming Might thirty first deadline.
Nonetheless, 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.
Because the business awaits additional developments, stakeholders intently monitor the result of Crypto.com’s software and its potential implications for the broader crypto ecosystem in Asia and past.
Additionally Learn: South Korea Strengthens Crypto Exchange Regulations, What’s Next?
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