List of cryptocurrency exchanges "Who is considered licensed" In Hong Kong, this sparks controversy over regulations

On June 1, Hong Kong's Securities and Futures Commission (SFC) revealed a list of cryptocurrency exchanges whose licenses are close to being approved.

According to the SFC website, 11 applicants, including Matrixport HK, Accumulus, Crypto.com and Bullish, are "considered licensed." Other platforms on the list are HKbitEX, PantherTrade, DFX Labs, Bixincom, xWhale, YAX and WhaleFin.

Hong Kong's strict requirements discourage big exchanges

If approved, these companies will increase the number of approved exchanges in Hong Kong at 13. Currently, only OSL Exchange and HashKey have licenses granted before the new regulations come into force in June 2023.

However, I have explained SFC states that these “deemed authorized” exchanges are not yet officially authorized. Additionally, he advises investors to be careful when trading on these platforms, as they may not obtain a license and may have to cease operations in the province.

Over the past year, the province has aimed to become a digital asset hub. However, its strict rules, while designed to protect investors and prevent money laundering and terrorist financing, have created significant obstacles for many exchanges. Reports indicate that the SFC has asked exchange license applicants to ensure that their products are not made available to users in mainland China, even though China has banned cryptocurrencies.

These strict requirements have prompted major exchanges such as OKX, Gate.io, Cocoin, Binance and HTX (formerly Huobi) to withdraw their applications for a virtual asset trading platform (VATP) license in Hong Kong.

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Notably, takedowns from these platforms have sparked scrutiny in the handling of the SFC application process. Hong Kong lawmaker David Chiu questioned whether the city could truly become a hub for financial innovation, given the many restrictions imposed at this early stage.

“Many in the sector fear that the new authorization regime will turn into a carbon copy of the food truck incident, or even become an example of government promotion of virtual banks, with much ado about nothing. They fear that the authorities will repeat themselves. the same mistakes.” Even if operators obtain licenses, it will be difficult for them to develop a profit model.”

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Additionally, Chiu claimed that the new licensing system shakes market confidence. He noted that many approval requirements are modeled after traditional finance, which is too strict for Web3. The industry's response to these challenges will be key in shaping the future. Cryptocurrency Exchanges In the region.