HTX, a cryptocurrency exchange, seeks licensing in Hong Kong.
On February 20, HTX, a cryptocurrency exchange formerly known as Huobi, made an application for a crypto license for its local branch in Hong Kong. The plan is to operate under the name HBGL Hong Kong Limited in the region.
HTX has joined the list of applicants seeking approval to offer services in Hong Kong. The Securities and Futures Commission (SFC) website reveals that HTX is seeking a virtual asset trading platform (VATP) license for its local subsidiary, Huobi HK, which is operated by HBGL Hong Kong Limited. This makes Huobi the most recent crypto company to seek a VATP license in Hong Kong since the local authorities introduced a new regulatory regime at the end of 2022.
Bybit, another crypto exchange, also recently filed an application with the SFC to operate in Hong Kong. However, despite the increased interest from crypto companies, the SFC has only granted licenses to two exchanges in Hong Kong so far. OSL and HashKey Exchange secured licenses in December 2020 and November 2022, respectively.
Criticism has been raised regarding the effectiveness of Hong Kong’s approach to cryptocurrencies. Wang Yang, the vice president of the Hong Kong University of Science and Technology, has voiced concerns about the existing licensing system, describing it as burdensome and counterproductive. He coined the term “Licensed to Be Killed” to highlight the challenges faced by licensed exchanges like OSL, which have experienced significant losses after receiving approval to operate in the region.
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