Hong Kong Securities Commission Receives 18 Crypto License Applications
Hong Kong’s Securities and Futures Commission (SFC) has seen a surge in crypto license applications, with 18 submissions from both local and global entities in just over two months.
Among these, Huobi HK applied for a virtual asset trading platform license on Feb. 20, joined by other exchanges like Crypto.com, OKX, Bybit, and DFX Labs since mid-November 2023. The licensing process mandates stringent due diligence, requiring as much as $25 million in spending by Web3 firms for comprehensive financial audits. Hong Kong’s regulatory clarity has also attracted traditional brokers like Tiger Brokers, upgrading their license to include crypto trading, emphasizing the increasing significance of crypto as an asset class.
Harvest Hong Kong, a major fund manager, submitted the first application for a spot Bitcoin exchange-traded fund on Jan. 26. As the region anticipates increased crypto adoption, licensed exchanges must maintain a minimum insurance coverage of 50%, as specified by Hong Kong regulators. OSL Exchange, revealing their compliance, entered a two-year partnership with Canopius, an underwriter Lloyds of London syndicate, securing insurance coverage for 95% of their users’ assets.
Clever Robot News Desk 23rd February 2024
