HKVAEX applies for a licence in Hong Kong’s evolving Crypto market indicating a major shift in the digital asset trading regulations.
A major development in the rapidly developing cryptocurrency market in Hong Kong is the virtual asset trading platform HKVAEX’s application for a license from the Securities and Futures Commission (SFC) of the city.
With the submission of this application on November 25, HKVAEX joins Panthertrade and OKX as recent applicants vying for regulatory approval under Hong Kong’s recently established cryptocurrency regulatory framework.
A significant shift in Hong Kong’s approach to regulating cryptocurrencies occurred in June. Contrary to earlier limitations, the new framework now allows ordinary investors to trade virtual assets.
Professional investors with at least $1 million in bankable assets were the only ones allowed access to this domain in the past. OSL and HashKey were the first cryptocurrency exchanges to receive licenses from the SFC as a result of this reform, which has made digital assets more accessible to a wider audience.
The South China Morning Post claimed in October that the establishment of HKVAEX is allegedly the brainchild of Binance, the largest cryptocurrency exchange in the world.
According to the report, which quotes unnamed industry insiders, Binance established HKVAEX, which launched in February 2023, to help with the licensing procedure in Hong Kong.
In spite of these allegations, HKVAEX has remained independent and emphasized that it will continue to apply for the SFC’s license to operate a virtual asset trading platform.
The need for Hong Kong to legitimize and regulate the cryptocurrency market has been exacerbated by the JPEX affair, which is regarded as one of the worst financial scams in the history of the area.
The SFC is moving more quickly to certify bitcoin items in an effort to improve industry compliance as a result of this occurrence. There might be a big change coming soon to Hong Kong’s virtual asset market.
The licensed virtual asset platform OSL Compliance Exchange shows that financial technology solution providers are becoming more interested in combining tokenized platforms with conventional banking systems.
A move like this might take advantage of people’s confidence in banks and spur the development of the virtual asset market. Following occurrences such as the JPEX crisis and modifications to regulations, authorities have been more vigilant.
OSL’s chief financial officer, Hu Zhenbang, saw a quicker rate at which regulatory agencies are approving products. Simultaneously, there is an increased focus on strict oversight of noncompliant platforms, especially with regard to reducing aggressive advertising strategies that were formerly used in public areas such as MTR stations.