HKDAEx, part of the Hong Kong Financial Asset Exchange Group, applied for the license on August 27.
The Hong Kong Securities and Futures Commission (SFC) has granted Hong Kong Digital Asset Xchange (HKDAEx) a new license to operate as a digital asset exchange, even though the application deadline had already passed before May 31.
The regulatory body’s listing indicates that on August 27th, HKDAEx, a Hong Kong-headquartered firm and member of the Hong Kong Financial Asset Exchange Group, submitted an application for a license to operate as a digital asset exchange organization.
However, the SFC has the power to reject the application if it finds deficiencies or unresolved fundamental issues. The Hong Kong Stock Exchange (HKDAEx) has stated that it “bridges the gap between physical assets and digital assets in order to enhance liquidity, thereby increasing the value of physical assets and fostering the real economy”.
As of June 1, it is now a criminal offense in HK to operate a virtual asset trading platform (VATP) without a valid license. The city’s regulatory body has granted preliminary approvals to a number of applicants, but they have not yet received full licenses.
The city’s regulatory body developed a short-term framework for cryptocurrency companies operating in the region prior to the licensing regime, which includes applicants deemed licensed.
At the moment, OSL Digital Securities and Hash Blockchain are the only two HK platforms that meet the requirements for a fully regulated virtual asset trading platform.Some cryptocurrency exchanges that have not yet received full operating licenses in HK include Crypto.com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin, and Matrixport HK.
HK has been making efforts to position itself as a worldwide cryptocurrency hub, with the goal of luring investors and businesses to the digital assets industry that is located within the city.
HK has the potential to become a hub for free trade and act as a proving ground for developing financial technology. The city’s advancements in digitization and tokenization enable this potential.
The investment migration consultant Henley & Partners issued the 2024 Henley Crypto Adoption Index, which placed Hong Kong second globally in terms of cryptocurrency adoption, only behind Singapore.
Both in terms of its economic characteristics and its tax-friendly nature, Hong Kong received extraordinarily excellent marks. According to the study’s findings, the city has created an environment that actively encourages the rise of cryptocurrencies “through significant public interest.”
