Despite the fact that the May 31 deadline has passed, Hong Kong Digital Asset Xchange (HKDAEx) has been awarded a fresh digital asset exchange licence by the Hong Kong Securities and Futures Commission (SFC).
According to the regulator’s listing, HKDAEx, a Hong Kong-based business that is a part of the Hong Kong Financial Asset Exchange Group, applied on 27 August for a license to exchange digital assets.
On the other hand, if the SFC determines that the application is lacking or that there are unresolved basic flaws, it may return it. As HKDAEx put it:
“connects physical assets with digital assets to improve the liquidity so as to raise the value of physical assets and to promote the real economy.”
On June 1, it was illegal to operate an unlicensed virtual asset trading platform (VATP) in Hong Kong.
The city’s regulator granted preliminary clearance to some applications, but they have not yet been granted complete licenses. Applicants who are deemed to be licensed are covered under a temporary structure created for cryptocurrency companies that were active in the area prior to the implementation of the licensing regime.
OSL Digital Securities and Hash Blockchain are the only two fully licensed virtual asset trading platforms in Hong Kong at the moment.
The following cryptocurrency exchanges are not yet fully licensed to operate in Hong Kong: Bixin[.]com, EX[.]IO, YAX, WhaleFin, Crypto[.]com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, and Matrixport HK.
In an effort to become known as a global center for cryptocurrencies, Hong Kong has been luring businesses and investors to the city’s digital asset sector. Hong Kong has the potential to become a free trade hub and a test bed for new financial innovations thanks to its tokenization and digitalization achievements.
According to the 2024 Henley Crypto Adoption Index released by the investment migration consultancy Henley & Partners, Hong Kong is the second most popular cryptocurrency adopter worldwide, right after Singapore.
Hong Kong received remarkable marks for both its tax-friendliness and economic aspects. The city fostered an environment that encourages cryptocurrency growth “through significant public interest,” according to the research.
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