Crypto firms are longing to enter the market following Hong Kong’s retail trading regime, all set to launch in a couple of days. With numerous crypto firms revealing their intentions to apply for licenses by June 1, the competition to attract Hong Kong’s retail crypto traders is at an all-time high.
According to reports, CoinEx, a Hong Kong-based crypto exchange, announced the launch of a local platform called BitHK on May 29. By taking this remarkable decision CoinEx plans to appeal for Virtual Asset Service Provider (VASP) license from the securities regulator on June 1.
On the other hand Huobi, another cryptocurrency exchange, announced via Twitter, that its Hong Kong entity is now providing crypto trading services to local retail traders. Huobi had already submitted its VASP application to the Securities and Futures Commission (SFC) on May 29.
Various other significant Banks such as ZA Bank, the largest digital bank in Hong Kong, along with a subsidiary of the Chinese state-owned conglomerate Greenland Holdings, have both clearly outlined their objective to gain a VASP license.
On May 23, the Securities and Futures Commission (SFC) reportedly stated that licensed Virtual Asset Service Providers would now be sanctioned to cater to retail investors starting from June 1. The SFC extends an invitation to those who are ready to embrace its guidelines, which encompass secure asset custody, robust security standards, asset segregation, and more.
Interested organizations are urged by the SFC to apply for a VASP license asap. In a joint statement released on May 29, two newly formed crypto industry groups, Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour, made their official debuts.
These groups have well-defined purposes within the industry. The HKLVAA prioritises providing support to VASP-licensed firms and those seeking licensure in the city, while Web3 Harbour aims to foster the growth of local Web3 development.