Starting June 1st, Hong Kong's retail crypto trading scene is set to witness an exciting phase of expansion and development.
The anticipated opening of Hong Kong's retail crypto trading market on June 1st has sparked a scramble amongst cryptocurrency firms. These companies are lining up to submit applications for the coveted Virtual Asset Service Provider (VASP) license.
CoinEx, a Hong Kong-based crypto exchange, is the latest entrant in this license chase. The company announced on May 29th its plans to introduce a local platform, BitHK. On June 1st, the latter will allegedly file for a VASP license with Hong Kong's securities regulator.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What is a Smart Contract? (Explained with Animations)
In tandem with CoinEx, another crypto exchange Huobi revealed via Twitter that its Hong Kong entity was set to offer crypto trading services to the administrative region's retail traders.
Huobi lodged its VASP application with the Securities and Futures Commission (SFC) on May 29th.
This surge of license applications isn't limited to these two exchanges. Last week, Gate.io and BitMEX declared their intentions to enter the Hong Kong crypto market and reported having submitted their applications. Other key players, such as OKX, ZA Bank (Hong Kong’s largest digital bank), and a subsidiary of the Chinese state-owned conglomerate Greenland Holdings, have also indicated their interest in obtaining a VASP license.
On May 23rd, the SFC gave a green light for licensed VASPs to cater to retail investors beginning June 1st. The regulator invited companies to apply for a license, provided they are ready to adhere to its guidelines regarding security standards, safe asset custody, asset segregation, and more.
As June 1st approaches, the scramble for Hong Kong's retail crypto market shows the high-stakes race among crypto firms. As this unfolds, the future of the city as a crypto hub hangs in the balance, attracting global attention.
