Crypto.com Applies For Hong Kong License Amid Regulatory Crackdown

In a bid to secure a presence in Asia’s thriving crypto market, the U.S.-based crypto exchange Crypto.com has formally applied for a license from the Hong Kong Securities and Futures Commission (SFC). With Hong Kong bracing for tighter regulations in the crypto domain, Crypto.com is gearing up for tough regulatory compliance.

Crypto.com Applies For Hong Kong License

According to Hong Kong SFC’s official website, the application by Crypto.com was made on Friday, February 9. The move aligns with the SFC’s stringent regulations aimed at bolstering investor protection while fostering Hong Kong’s emergence as a crypto hub.

With this application, Crypto.com joins a list of 17 contenders vying for regulatory approval, including prominent industry players such as Bybit, Bullish, OKX, and VAEX, as indicated by the SFC’s official website listing. The regulatory body has imposed a firm deadline of February 29th for exchanges to apply for a virtual asset trading platform (VATP) license or face potential closure by May 31st.

Presently, only two platforms, OSL and HashKey Exchange, have been granted approval to cater to retail investors in Hong Kong. While 18 other applications are currently under review, Crypto.com’s strategic move underscores ongoing industry interest in tapping into the region’s burgeoning crypto landscape.

Also Read: MiCA Regulation: How Will EU’s Regulatory Regime Impact Stablecoins?

Hong Kong SFC’s Stance On Crypto Regulation

The SFC’s uncompromising stance is evident that unlicensed exchanges operating within Hong Kong’s jurisdiction will be swiftly shut down. To safeguard investors, the regulatory authority has urged individuals to verify the licensing status of their chosen platforms and consider migrating accounts to licensed counterparts ahead of the looming May 31st deadline.

Nevertheless, the SFC has cautioned that even submitting an application does not guarantee approval. Thus, the fate of Crypto.com’s bid, along with others in the pipeline, remains uncertain, casting a veil of anticipation over the regulatory landscape in Hong Kong’s crypto sphere.

As the industry awaits further developments, stakeholders closely monitor the outcome of Crypto.com’s application and its potential implications for the broader crypto ecosystem in Asia and beyond.

Also Read: South Korea Strengthens Crypto Exchange Regulations, What’s Next?

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