The Hong Kong government opened applications for virtual asset service providers (VASPs) licenses in June last year, with a deadline of February 29th this year. A total of 24 operators, including OKX, Bybit, Crypto.com, and Huobi HK, submitted applications. However, well-known operators such as Binance and Coinbase were not on the list.
The VASP licensing application period has now closed, and according to the Securities and Futures Commission (SFC) of Hong Kong, a total of 24 operators have submitted applications. However, the world’s largest cryptocurrency exchange, Binance, as well as the US-listed exchange Coinbase and the veteran exchange Kraken, have not applied.
The operators who have submitted applications include OKX, Bybit, Crypto.com, Huobi HK, Matrixport HK, Gate.HK, WhaleFin, Bullish, PantherTrade Limited, BGE, HKbitEX, HKVAX, VDX, and others.
Two operators, hi5 (Hong Kong) Limited (HKX) and QuanX Lab Limited (QuanXLab), managed to submit their applications before the February 29th deadline.
In addition, Huobi HK’s operating company, “HBGL Hong Kong Limited,” submitted an application on February 20th, withdrew it three days later on February 23rd, and then resubmitted it on February 26th. The reason for this is currently unknown.
Apart from Huobi HK’s resubmission, three operators have had their applications withdrawn or rejected, including Ammbr, BitHarbour, and Meex.
Currently, only two platforms, OSL and HashKey, have been granted licenses. The SFC reminded that being on the application list does not guarantee the issuance of a license, and these platforms may need to end their operations in Hong Kong.
Angela Ang, Senior Policy Advisor at blockchain intelligence company TRM Labs, stated that the VASP licensing application list is a litmus test for industry sentiment. The fact that many well-known operators have submitted applications is a positive sign. What Hong Kong truly needs is a determined and substantial group of participants to support its ecosystem. The key for the future is to observe how many companies actually invest in the Hong Kong market.
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