On February 20, HTX submitted their application for a cryptocurrency license through its regional subsidiary, HBGL Hong Kong Limited, signaling their intent to establish operations in Hong Kong.

The digital asset exchange HTX, previously known as Huobi, has entered the queue of entities aiming to secure regulatory consent to provide services within Hong Kong.

HTX is seeking approval for a virtual asset trading platform (VATP) license for its affiliate Huobi HK, as per the Securities and Futures Commission’s (SFC) website. This move comes on the heels of the Hong Kong government’s announcement to implement a more structured regulatory framework at the end of 2022. Huobi is the most recent crypto firm pursuing a VATP license in Hong Kong.

HTX’s licensing intentions were made public shortly after Bybit, another cryptocurrency exchange, lodged an application with the SFC for permission to function in Hong Kong. Although there is considerable interest from companies in the crypto sector, to date, only two exchanges have secured SFC licenses in Hong Kong. OSL got its license in December 2020, while HashKey Exchange received theirs in November 2022.

Notwithstanding these developments, there are concerns over the efficacy of Hong Kong’s cryptocurrency regulatory strategies. Wang Yang, the vice president of Hong Kong University of Science and Technology, openly criticized the restrictive nature of the licencing system, suggesting that it could hinder business rather than foster it. He used the phrase “Licensed to Be Killed” to accentuate the difficulties that licensed businesses like OSL face, which have suffered losses following their authorization to operate in the locale.

Follow Us on Google News