Justin Sun, frequently mentioned in the crypto world, may be preparing for a possible rally. In this context, HTX is gearing up for a significant move. It aims to formalize exchange operations by obtaining a license, thus providing more comfortable services to investors in Hong Kong.
Crypto Exchange HTX Files for VATP License in Hong Kong
The dynamism in Hong Kong’s crypto sector continues. According to recent news, HTX, formerly known as Huobi, has applied to the Securities and Futures Commission (SFC) to formalize the operations of its local branch in Hong Kong. This step aims to obtain a Virtual Asset Trading Platform (VATP) license for HBGL Hong Kong Limited, a subsidiary that HTX plans to operate under the name Huobi HK in Hong Kong.
The application of HTX is noteworthy as it highlights the significance of competition in the crypto sector and the licensing regime in Hong Kong. There has been an increase in license applications for crypto exchanges in Hong Kong following updates to regulations. However, the process is filled with strict scrutiny and compliance with certain standards.
What Does HTX’s Application Mean?
Crypto exchange HTX’s application comes shortly after similar news that Bybit also took steps to obtain a license from the SFC. However, Hong Kong’s licensing approach has also faced criticism. In particular, Wang Yang, the Vice President of Hong Kong University of Science and Technology, has described the current licensing process as cumbersome and inefficient.
The challenges faced by licensed exchanges even after starting operations in the region are also noteworthy. For instance, licensed exchanges like OSL have encountered significant difficulties after receiving approval, and Wang Yang summarized this situation as “Licensed to Be Killed.”
The experiences in the crypto market, as in this example, can be interpreted as an indication that companies continue their efforts to formalize their operations in Hong Kong. However, the complexity of the licensing process and concerns expressed by some industry representatives could lead to further debate over the region’s crypto regulations. The future of Hong Kong’s crypto regulations is currently being shaped by a search for balance between industry players and regulators.
