December 20, 2024
By Our Correspondent
Hong Kong’s securities regulator has granted approval to four cryptocurrency exchanges as part of the city’s initiative to enhance its competitiveness in the global digital asset trading arena. The region is actively positioning itself as a hub for various assets, including cryptocurrencies, to sustain its status as a prominent financial center.
The Hong Kong Securities and Futures Commission announced the issuance of licenses to Accumulus GBA Technology (Hongkong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI). This development increases the total number of licensed virtual asset trading platforms in Hong Kong to seven, following the prior approvals of three platforms: HashKey, OSL, and HKVAX.
Nick Ruck, director at LVRG Research, remarked that the entry of new players reflects Hong Kong’s long-term strategy and dedication to digital assets. He noted that the competition to establish a leading global crypto hub has intensified, with many companies relocating to other regions such as Singapore and Dubai.
The securities regulator indicated that these recent approvals were part of its “swift licensing process.” In April, Hong Kong introduced Asia’s first spot bitcoin and ether exchange-traded funds (ETFs), following the U.S. launch of its first spot bitcoin ETFs three months prior. These ETFs are designed to track the prices of bitcoin.
Analysts have observed that an increase in the number of trading platforms could lead to lower management fees for crypto ETFs, thereby enhancing their attractiveness. Bitcoin has experienced a remarkable rise of over 50% since the pro-crypto Donald Trump secured the U.S. presidential election on November 5, reaching a record high of more than $107,000 on Tuesday.
