Hong Kong Digital Asset Xchange is the latest firm to apply for a license, having submitted its application on Aug. 27.
The Hong Kong Securities and Futures Commission (SFC) has granted a new digital asset exchange license to Hong Kong Digital Asset Xchange (HKDAEx) despite the May 31 deadline having passed.
HKDAEx, a company based in Hong Kong and a member of the Hong Kong Financial Asset Exchange Group, submitted an application for a digital asset exchange license on Aug. 27, according to the regulator’s listing.
However, the SFC may return the application if it finds it incomplete or if there are unresolved fundamental issues.
HKDAEx said it “connects physical assets with digital assets to improve the liquidity so as to raise the value of physical assets and to promote the real economy.”
Hong Kong’s ongoing crackdown on unlicensed crypto trading platforms
As of June 1, operating an unlicensed virtual asset trading platform (VATP) in Hong Kong became a criminal offense.
Some applicants received initial approvals from the city’s regulator but are yet to be fully licensed. Deemed-to-be-licensed applicants fall under a short-term framework designed for crypto firms operating in the region before the licensing regime was enacted.
There are only two fully licensed virtual asset trading platforms in Hong Kong at present: OSL Digital Securities and Hash Blockchain.
Crypto exchanges that have yet to receive full operational licenses in Hong Kong include Crypto.com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin and Matrixport HK.
Hong Kong aims to be a global crypto hub
Hong Kong has been working to establish itself as a global cryptocurrency hub, attracting investors and companies to the city’s digital assets industry. With its advancements in digitalization and tokenization, Hong Kong has the potential to develop into a hub for free trade and serve as a testing ground for emerging financial technologies.
According to the 2024 Henley Crypto Adoption Index published by the investment migration consultancy Henley & Partners, Hong Kong ranked second globally in cryptocurrency adoption, just behind Singapore.
Hong Kong scored exceptionally high in economic factors and its tax-friendliness. According to the study, the city cultivated an environment that promotes crypto growth “through significant public interest.”
To read article in Arabic, please visit the website Crypto Mena
Risk Disclaimer
Although Sponsored Trading can be profitable, it is associated with a significant risk of losing your investment. The risks will increase when trading on margin companies. Traders must exercise due diligence and be careful when making their trading decisions. It is the sole responsibility of the Trader to learn and acquire the knowledge and experience required to use the Trading Platform and anything that will be required to trade properl
