The Hong Kong Securities & Futures Commission (SFC) has unveiled the list of crypto exchanges that are considered “deemed-to-be-licensed” today. Currently, there are only two platforms that hold trading licenses in Hong Kong. The SFC has disclosed the list of exchanges that have applied for trading licenses, and it includes 11 exchanges that are expected to be approved in the near future. The list features well-known exchanges such as Bullish, Crypto.com, and WhaleFin, as well as Hong Kong-based exchanges HKbitEX and Panther Trade. However, there are also exchanges on the list that have not yet received indications of approval.
Only OSL Exchange and HashKey Exchange have been granted trading licenses in the country, with OSL Exchange receiving its license in 2020 and HashKey Exchange in 2022. The SFC has rejected the license application of Meex, and several other exchanges have withdrawn their applications, including Bybit and OKX. Notably, major US exchanges Binance, Coinbase, and Kraken have not applied for a license in Hong Kong.
The deadline for approving crypto exchanges was set for June 1st by the SFC, which has stated that on-site inspections will be conducted before granting licenses. The “deemed-to-be-licensed” designation is temporary until the platforms receive their official licenses. Exchanges without a license or the “deemed-to-be-licensed” status will not be allowed to operate in Hong Kong, and the SFC has warned that continuing operations would be considered a criminal offense and a violation of anti-money laundering and counter-terrorism laws.
With the recent developments in the crypto sector, Hong Kong is emerging as a potential crypto hub. The approval of Hong Kong spot ETFs has garnered global attention and signaled the possibility of a significant influx of Asian capital. However, as of May 31, the HK spot BTC and ETH ETFs have not seen positive inflows. Additionally, the launch of FinTax, a crypto-asset tax reporting software, and the introduction of e-CYN wallets, a digital fiat currency app, indicate Hong Kong’s efforts to compete with Dubai and Singapore in becoming a leading crypto hub.
In other crypto news, there has been a discussion surrounding Biden’s SAB 121 veto and its impact on protecting freedoms in the crypto industry.