Hong Kong-based cryptocurrency exchange Bybit has officially applied for a license to operate as a “virtual asset trading platform” in Hong Kong. The application, submitted on Wednesday through the entity Spark Fintech Limited, is currently under review by the Hong Kong Securities and Futures Commission. The financial regulator is concurrently evaluating applications from 14 crypto firms, including OKX, which submitted its application on November 16, as indicated on the commission’s website, media reports said.
On a regulatory note, HKVAEX, a crypto platform reportedly associated with Binance, also applied for the same license on January 4, following the pattern of crypto firms exploring opportunities in Hong Kong.
Despite the broader crackdown on crypto trading and mining in mainland China, Hong Kong has remained receptive to cryptocurrency firms. In June 2023, the city initiated a crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. Currently, two platforms—HashKey and OSL—hold licenses in the region.
Moreover, Hong Kong is poised to accommodate spot crypto exchange-traded funds (ETFs), with both the SFC and the Hong Kong Monetary Authority announcing in December their review of existing policies. Two circulars were published outlining the requirements for spot crypto ETFs. In response, approximately 10 fund companies have reportedly started exploring the launch of potential spot crypto ETFs in the city, according to Livio Weng, CEO of HashKey Exchange, in a statement made in January.
Adding to the momentum, the Hong Kong arm of Harvest Fund Management, a prominent Chinese asset manager, recently submitted an application for a spot bitcoin ETF last week, further contributing to the evolving landscape of cryptocurrency regulations in the region.
