Eleven platforms together with HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixincom, xWhale, YAX, Bullish, Cryptocom, WhaleFin, and Matrixport HK, had been decided to be eligible for licensing as crypto exchanges in Hong Kong, in response to data launched by the SFC. The announcement comes as an aftermath of Hong Kong regulators giving exchanges a deadline of June 1 to use for the licensing.
Solely Cryptocom seems to have been accepted among the many well-known offshore exchanges. OKX Bybit Gate HTX Binance and others have reportedly withdrawn their functions.
Crypto Actions in Hong Kong See Regular Rise
Hong Kong affords a doorway to entry wealth from China’s mainland in standard markets. But, mainland buyers do not need easy accessibility to Hong Kong’s cryptocurrency exchanges or exchange-traded funds (ETFs), and Beijing has outlawed the buying and selling of digital belongings.
Chinese language nationals are considered evading the cryptocurrency prohibition, both by transferring cash overseas or searching for various belongings within the face of declining property values. Demand has been fueled by Bitcoin’s fourfold enhance for the reason that starting of 2023. The cryptocurrency exchange sector has a troubled historical past of functioning within the murky space, if not worse. Among the many largest frauds in US historical past was the collapse of FTX. After getting into a responsible plea to breaking US anti-money-laundering and sanctions legal guidelines in November, Binance was assessed a document $4.3 billion wonderful.
Immediately’s transfer is according to latest measures applied by Hong Kong authorities. The licensing will assist higher regulate the market in a arrange the place unlawful transactions are susceptible to happen. The Hong Kong Financial Authority (HKMA) has been specializing in illicit over-the-counter (OTC) providers for the reason that begin of the 12 months as a result of they imagine Chinese language residents make the most of these platforms to get round restrictions on abroad transfers.
Hong Kong can preserve its cryptocurrency legal guidelines as a result of it adheres to the “one nation, two programs” idea although it is part of China. Hong Kong continues to permit cryptocurrency exercise, regardless of mainland China’s extreme restriction on any non-public celebration coin issuance since 2021. Chainalysis estimates that between July 2022 and June 2023, the OTC market contributed considerably to the $64 billion whole quantity of transactions that occurred in Hong Kong.
