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After Bybit, HTX applied for VATP license in Hong Kong

Key Takeaways
  • HTX, Formerly Huobi, Navigates Tough HK Crypto Licensing Landscape.
  • Hong Kong's Crypto Market Boom where HTX Seeks VATP License Amid Challenges.
  • Unlocking Hong Kong's Crypto Potential facing Licensing Hurdles.
22-Feb-2024 By: Simran Mishra
After Bybit, HTX app

HTX Faces Licensing Hurdles in Hong Kong Crypto Market

HTX one of the leading crypto exchange formerly known as Huobi, has applied for a Virtual Asset trading platform (VATP) license from the Hong Kong’s Securities and Futures Commission (SFC) for its regional subsidiary “Houbi HK” which operates under the guidance of HBGL Hong Kong Limited.

Challenges facing HTX in getting a license

  • From November 2023 till now 18 Crypto exchange companies including Bybit, OKX, and others has applied for VATP license from SFC but due to its harsh regulatory and licensing process till now only two companies OSL and HashKey Exchange has got license which confirms the difficulty in getting a license for HTX. 

  • For the harsh licensing procedure Hong Kong’s SFC comes under criticisms from various stakeholders For Example Wang Yang, Vice President of Hong Kong University of Science and Technology has used the term “License to Kill” for the tough 

Why HTX is interested in Hong Kong

  • Hong Kong is an emerging market for Cryptocurrency and Blockchain technology. 

  • As per STATISTA Hong Kong’s crypto market Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.58% resulting in a projected total amount of US$254.6m by 2028. 

  • In Hong Kong, Crypto currency is being promoted through crypto ATMs, business, accessibility and legality. Even Hong Kong has the most crypto ATMs per square foot. 

  • Along with this, the Hong Kong government continuously makes attractive offers to cryptocurrency firms to expand this industry in their country. These offers include providing banking services to crypto firms along with simple and easy regulations related to cryptocurrencies.

What is the need of the hour - Hong Kong’s SFC should ease the procedure to get a Virtual Asset Trading Platform (VATP) license for crypto exchange firms so that there is an increase in competition in market which benefits the investors making Crypto Adoption a main agenda of every country.

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