Hong Kong's Securities and Futures Commission (SFC) has granted licenses to four new cryptocurrency exchanges, reinforcing the city's standing as a digital assets hub.
New Crypto Exchange Licenses
Today, Hong Kong's SFC announced the licensing of four new crypto exchanges: Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology. This brings the total number of licensed virtual asset trading platforms in Hong Kong to seven. These licenses are part of Hong Kong's broader strategy to bolster its rules on virtual assets and enhance its competitiveness on a global scale.
Bitcoin Price Surge Reaction
The licensing decision coincided with a sharp rise in Bitcoin prices, which have increased over 60% in the past six months, recently reaching the $100,000 mark. "We aim to balance protecting investors' interests with facilitating the continuous development of the virtual asset ecosystem in Hong Kong," said Eric Yip, SFC executive director of intermediaries. The newly licensed platforms must complete additional tasks before fully operating.
Prospects and Challenges for Hong Kong
Thousand Whales Technology operates the EX.IO trading platform, supported by Valuable Capital Group, a brokerage belonging to Sina Corporation. The four new exchanges were selected from almost 30 firms that applied for VATP licenses in 2024. Some companies, such as OKX and HTX, withdrew applications due to regulatory issues. Previously, Hong Kong licensed three platforms: HashKey, OSL, and HKVAX. The city also launched Asia's first spot Bitcoin and Ether ETFs. However, Hong Kong faces challenges in regulating over-the-counter crypto trading and is reassessing its oversight approach.
The licensing of new crypto platforms reflects Hong Kong's ambition to strengthen its role in the global digital asset market despite existing regulatory challenges.
