Crypto.com, Bybit join OKX: Rush to secure Hong Kong SFC cryptocurrency exchange license

Crypto.comA famous cryptocurrency exchange based in the United States took a significant step by applying for a business license in Hong Kong. The company formally submitted its application to the Hong Kong Securities and Futures Commission (SFC) on February 9, a strategic step towards expanding its presence in the Asian market.

Regulatory deadlines lead to a flood of license applications.

Crypto.com’s decision to obtain a license in Hong Kong comes amid a regulatory emergency set by the SFC. To position Hong Kong as a pivotal center for cryptocurrency activity and ensure regulatory oversight, the SFC has set a strict deadline of February 29 for exchanges to obtain licenses by May 31 or face possible closure.

Hong Kong’s cryptocurrency landscape faces a regulatory crossroads

With the addition of Crypto.com’s application, the total number of competitors vying for regulatory approval in Hong Kong jumps to 17. Notable industry peers such as Bybit, Bullish, OKX, and VAEX are also among the prominent players seeking the coveted licenses. As described on the official SFC website.

Also Read: Bybit Seeks VATP License in Hong Kong to Strengthen Cryptocurrency Operations

Ensure investor protection amid regulatory changes

Investor protection remains a top priority, with the SFC maintaining its firm stance against unlicensed exchanges and highlighting the imminent closure of their operations within Hong Kong. The regulator emphasized that it is important for individuals to check whether the platform they choose has initiated the VATP license application process. Additionally, investors are advised to consider migrating their accounts to a licensed platform before the upcoming May 31 deadline to protect their interests.

Uncertain Horizon: Crypto.com’s Fate in Regulatory Queue

Crypto.com’s application represents a strategic move to navigate Hong Kong’s evolving regulatory environment, but the approval process is fraught with uncertainty. The SFC has made it clear that simply applying for a license does not guarantee approval. The fate of the Crypto.com application will therefore be subject to regulatory scrutiny and deliberation along with those of other apps.