Prominent players such as OKX and Bybit have withdrawn their bids for permits, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, along with major platforms like Coinbase Global and Kraken, opted not to apply for licenses.
Hong Kong’s Shift to Digital Assets (Image Source: iStockphoto)
Hong Kong‘s Securities and Futures Commission (SFC) has announced that 11 cryptocurrency exchanges are on track to secure licenses, marking a significant milestone in the city’s efforts to establish itself as a leading hub for the digital asset industry. Among the notable applicants are Crypto.com and Bullish, both of which have been deemed to be licensed, according to the SFC’s website.
However, prominent players such as OKX and Bybit have withdrawn their bids for permits, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, along with major platforms like Coinbase Global and Kraken, opted not to apply for licenses.
According to the Bloomberg report, the SFC set a deadline of June 1 for crypto exchanges to either obtain licenses or be deemed licensed to operate in the city and cater to local investors. While this move signifies progress, firms must still satisfy the SFC’s compliance requirements to receive actual permits.
This development underscores Hong Kong’s strategic pivot towards nurturing a virtual asset hub, initiated in late 2022. It comes as part of broader efforts to restore the city’s reputation as a financial center following a crackdown on dissent that reverberated globally.
The report added that despite these advancements, the competition remains fierce, with cities like Dubai and Singapore also vying for prominence in the digital asset space. Whether Hong Kong will emerge as a definitive leader in this arena remains uncertain.