In Hong Kong, cryptocurrency companies have obtained licenses to operate until June 1. A number of cryptocurrency companies have announced plans to apply for licenses. The authorities have also released cryptocurrency guidelines for cryptocurrency exchanges. This ensures that your business operates legally.
Hong Kong-based cryptocurrency exchange CoinEx has announced its entry into Hong Kong by launching BitHK. It is a professional cryptocurrency trading platform serving Hong Kong users. The announcement was made on May 29th.
Fuboi tweeted the same day to offer cryptocurrency trading to retail traders. The company has submitted a Virtual Asset Service Provider License (VASPL) application to the Securities and Futures Commission (SFC).
VASPL Strengthens Enterprises to Establish Cryptocurrency Business
Currently, Hong Kong (HK) is allowed to operate cryptocurrency exchanges. Authorities are moving toward a more accommodative approach to cryptocurrencies. According to Financial Services and Treasury Secretary Christopher Hoy, previous reports said about 80 companies are looking to establish cryptocurrency businesses here.
But recently, the SFC concluded that there were a total of 152 applications in February. This increases the chances of Hong Kong becoming a cryptocurrency hub for Asia and beyond.
Other companies such as cryptocurrency exchange OKX, virtual ZA bank and conglomerate Greenland Holding have also shown interest in obtaining VASP licenses. The license application was announced by SFC on May 29th. According to the announcement, those seeking security, segregation and storage of crypto assets are welcome to apply for a license.
Hong Kong becomes the hub of the cryptocurrency market
Crypto exchanges, Hong Kong Virtual Assets Association (HKLVAA) and Web3 Harbor also announced separate launches in their integration statements. Although both companies are designed to serve different sides of the industry, they declare their founding together. HKLVAA aims to serve his VASPL company and Web3 Harbor will help serve her Web3 development to local residents.
Some of the guidelines for cryptocurrency companies include exposure limits for retail investors. Also, retail trading of highly liquid tokens issued for at least one year is permitted. This includes marketing rights for cryptocurrency companies. Companies without a license cannot promote their services through advertisements.