Bybit Seeks Virtual Asset Trading Operator License in Crypto-Friendly Hong Kong
Summary:
Digital currency exchange, Bybit has applied for a Virtual Asset Trading Operator (VATP) license with the Hong Kong Securities and Exchange Commission (SFC). Currently, only two licensed crypto exchanges operate in Hong Kong, with the SFC reviewing 14 new similar applications. VATP licensure allows firms to cater to retail customers, while the Virtual Asset Service Provider license is for companies dealing solely with professional investors. Hong Kong's digital asset-friendly regulations have made it a leading destination for crypto companies, despite China's restrictive approach to digital assets.
The digital currency exchange, Bybit, has submitted a request for a Virtual Asset Trading Operator (VATP) license to the Hong Kong Securities and Exchange Commission (SFC). The SFC site reveals that Bybit, through its business component Spark Fintech Limited, submitted the application on January 31. Currently, the financial oversight body is assessing 14 additional VATP applications, counting one from the crypto market OKX.
At present, only two digital currency exchanges possess a license from the SFC in Hong Kong: OSL exchange, licensed on December 15, 2020, and HashKey Exchange, granted its license on November 9, 2022. With a VATP license, Hong Kong-based firms are permitted to cater to retail customers, whereas the Virtual Asset Service Provider (VASP) license confines companies to dealing with professional investors only. As Hong Kong’s laws state, to qualify as a professional investor, one must possess portfolios worth at least eight million Hong Kong dollars or approx. $1.03 million USD.
Hongkong, in 2023, established itself as a favorite hotspot for crypto businesses, thanks to its digital asset-friendly laws that oppose mainland China’s stringent regulations on cryptocurrencies. New crypto-centric regulations were introduced by the SFC in 2023, which facilitated institutional as well as retail investors to venture into the digital asset market. Furthermore, Hongkong was prepared to accept crypto exchange-traded fund (ETF) applications on December 22, post an announcement by the SFC and the Hong Kong Monetary Authority (HKMA), the city’s equivalent of a central bank, of their readiness.
Meanwhile, several companies offer crypto futures-based ETFs in Hong Kong, an example being the Samsung Bitcoin Futures ETF, introduced by Samsung Asset Management in January 2023, which declared that it's open to the idea of launching a spot ETF.
Published At
2/1/2024 4:23:48 PM
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