HTX Applies to Secure VATP License for Local Branch in Hong Kong

HTX, formerly known as Huobi, has entered the race of firms that have filed applications to start offering services in Hong Kong. The Securities and Futures Commission (SFC) is pushing forward to ease the procedure to enter the crypto market. 

As per the SFC website, HTX is eager to secure a virtual asset trading platform (VATP) license for its regional subsidiary,’ Huboi HK.’ The subsidiary is solely operated under the guidance of HBGL Hong Kong Limited.

Following the announcement of a new regulatory regime in the last quarter of 2022, the SFC has received applications from dozens of crypto-related companies. 

Despite a harsh regulatory environment in China, the Hong Kong government is working to frame a much more convenient set of rules for the companies seeking to offer services in the crypto sector.

HTX’s application comes after other applications filed by some other popular cryptocurrency exchanges such as Bybit and a few more. Others claim that the hype of Hong Kong rules is a myth, as to date, the SFC has granted the license to only two cryptocurrency exchanges.

Other Related Information 

Some regional media outlets in Hong Kong reported that Financial Services and Treasury Minister Hui Ching-yu said that Hong Kong SFC in the past three years (2021-2023) total number of reported cases of crimes stood at 1,397,2,336.

Specified media sources state that the SFC is actively working on the application it received the month earlier regarding the approval of Bitcoin spot ETF. 

A growth in crypto adoption in the region has been seen in the past few years, but with the increase in adoption comes a spike in the risk of scams and attacks.

Almost every cryptocurrency exchange focuses on global expansion; some even hire employees from the same nation they are targeting. Regarding spot trading volume, Binance is the market leader, followed by Coinbase.

Crypto Market Update

Since the past few weeks, the market has flourished, and on February 20, the market capitalization of crypto sectors reached over $2 Trillion, a most awaited milestone. Despite continuous growth, a steep decline of 1.52% has been observed in the market capitalization of the crypto sector in the past 24 hours, and it was $1.95 Trillion as of writing. 

The market leader, Bitcoin, has lost 1.69% of its trading price compared to its February 20, 2024 trading price. Market analysts and observers claim that the spike in the trading price before the upcoming 4th Bitcoin halving backed the recent fall.

The evolution and usage of blockchain technology have reshaped the traditional and other finance sectors. Bitcoin is among the first cryptocurrencies to debut on the market. As of writing, it is the most adopted cryptocurrency globally and has a dominance of more than 50% on the market.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.