HTX has recently applied for a cryptocurrency license for its local branch in Hong Kong, with plans to establish HBGL Hong Kong Limited in the region. The well-known cryptocurrency exchange HTX, previously known as Huobi, is now among the list of applicants seeking approval to offer services in Hong Kong.
As per the Securities and Futures Commission’s (SFC) official website, HTX is seeking a virtual asset trading platform (VATP) license for its local subsidiary, Huobi HK, which will be operated by HBGL Hong Kong Limited. This move makes Huobi the latest crypto company to pursue a VATP license in Hong Kong following the announcement of a new regulatory framework by local authorities in late 2022.
In a similar vein, Bybit, another crypto exchange, has also submitted an application for licensing from the SFC to establish operations in Hong Kong. Despite the growing interest from crypto firms, the SFC has only granted licenses to two exchanges in Hong Kong to date. OSL and HashKey Exchange received licenses in December 2020 and November 2022, respectively.
Nevertheless, criticisms have arisen regarding the effectiveness of Hong Kong’s cryptocurrency regulatory approach. Wang Yang, vice president of the Hong Kong University of Science and Technology, has raised concerns about the current licensing system, describing it as cumbersome and counterproductive. He coined the term “Licensed to Be Killed” to emphasize the challenges faced by licensed exchanges like OSL, which have experienced significant losses after obtaining approval to operate in the region.
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