BlocksInform
- Bybit’s Hong Kong Expansion Plans
- Capitalizing on Crypto-Friendly Policies
- Spot Crypto ETFs on the Horizon
The Bybit platform in Hong Kong is being operated by the crypto derivatives exchange, which is looking to enter the market.
Bybit’s Hong Kong Expansion Plans
In a recent public statement, cryptocurrency exchange declared its application for a license to operate as a virtual asset trading platform (VATP) in Hong Kong. Bybit believes that this move is crucial for its operations in the Asia Pacific region, as it wants to take advantage of the city's strategic location and well-established financial infrastructure.
The statement claimed,
"Obtaining a VATP license in Hong Kong is a significant step for Bybit. The city's strategic location and established financial infrastructure make it an ideal base for our operations and institutional clients, serving the Asia Pacific region."
Bybit's application, visible on the Hong Kong Securities and Futures Commission’s (SFC) website, reveals that the submission was made through Spark Fintech Limited on a Wednesday.
Capitalizing on Crypto-Friendly Policies
Like other crypto exchanges, Bybit's interest in Hong Kong stems from the region's welcoming stance towards cryptocurrencies. Hong Kong became the first place to open its doors to crypto firms last year, in contrast to mainland China's strict crackdown on crypto trading and mining. Retail cryptocurrency trading was reversed by the city, which now allows licensed exchanges to offer retail trading services.
The hong kong securities and futures commission has been scrutinizing applications from 14 crypto firms since the crypto licensing regime was introduced in June 2023. Retail investors are only allowed to access crypto trading services through OSL and Hashkey exchanges. Hong Kong emphasizes a meticulous evaluation process while being cautious about its license approvals.
Spot Crypto ETFs on the Horizon
Hong Kong is gearing up to embrace spot crypto exchange-traded funds (ETFs). Potential spot crypto exchanges were paved for by the SFC and the Hong Kong Monetary Authority's December disclosure of their updated policies. The requirements for these ETFs are outlined by the regulators in two circulars.
Around ten fund companies are considering launching spot cryptocurrency ETFs in the city, as reported by Livio Weng, CEO of Hashkey Exchange, in January.
Samsung Asset Management has launched a spot ETF in January 2023, while other companies have already introduced futures-based crypto ETFs in Hong Kong.
The city's progressive attitude towards cryptocurrency trading is aligned with Bybit's application for a crypto license in Hong Kong. The potential of Hong Kong as a hub for digital assets is ripe, but approvals are still selective and meticulous. Further evidence of the region's commitment to fostering a robust and diverse cryptocurrency market is provided by the integration of spot crypto ETFs.
Bybit
