Crypto Exchanges Retreat from Hong Kong Licenses as Digital Yuan Pilot Progresses
Summary:
Crypto exchange operators in Hong Kong are decreasing their efforts to secure operational licenses as the deadline nears, with three recently retracting their applications. In 2024, seven exchanges have withdrawn their license applications. Currently, 21 platforms, including global frontrunners, are waiting for licenses. The HKMA has also initiated a pilot for the digital yuan, marking its first deployment outside mainland China. The pilot allows Hong Kong residents to conduct transactions with their digital yuan wallets.
Crypto exchange operators in Hong Kong are gradually diminishing their efforts to secure operational licenses as the deadline for application looms. Recently, three of these digital currency exchanges aborted their pursuit for licenses from the Securities and Futures Commission of Hong Kong (SFC). On May 13, crypto trade platforms, IBTCEX and QuanXLab, retracted their applications previously submitted in February 2024, with another platform, Huobi HK - associated with HTX, doing the same the following day.
In the year 2024 alone, seven of such exchanges have retracted their application for licenses in Hong Kong. However, the motive behind these withdrawals hasn't been publicized on the HKSFC's website. For any crypto platform yet to apply for a license, operations in Hong Kong must cease by May 31.
At present, twenty-one platforms have set their sights on the Hong Kong license, including global frontrunners like Bybit, Crypto.com, Matrixport HK, HKX, and OKX. The most recent license application was made on May 17, by Bitcoin World Technology Limited, representing the "bitcoinworld" crypto platform.
In related news, Hong Kong's central bank - the Hong Kong Monetary Authority (HKMA), has initiated a pilot program for the digital yuan, making it the first deployment of the CBDC outside mainland China.
Currently, a mobile phone number is all that's required for Hong Kong residents to set up an e-CNY wallet, enabling cross-border payments, albeit with person-to-person transactions being unavailable. The ongoing pilot will now permit Hong Kong citizens to execute transactions from their digital yuan wallets, which can be refilled via 17 retail banks using the Faster Payment System (FPS).
As suggested by the HKMA's chief executive, Eddie Yue, the e-CNY application and wallet are set to progressively offer more features as they collaborate with PBoC to increase merchant adoption.
Published At
5/21/2024 2:18:02 PM
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