Summary:
Hong Kong approves four cryptocurrency exchanges to enhance its status as a global hub for digital assets.
Total licensed platforms in Hong Kong now reach seven with new entries.
The move reflects Hong Kong's long-term vision amidst competition from Singapore and Dubai.
Asia's first spot Bitcoin and Ether ETFs were launched in April, following U.S. trends.
Bitcoin has surged over 50% since the recent U.S. presidential election.
Hong Kong's Regulatory Push for Cryptocurrency Exchanges
Hong Kong's securities regulator has made a significant move by approving four cryptocurrency exchanges as part of its strategy to enhance its status as a global hub for digital asset trading. This initiative aims to maintain Hong Kong's allure as a financial centre amidst growing competition.
The Hong Kong Securities and Futures Commission has granted licenses to:
- Accumulus GBA Technology (Hongkong) Co.
- DFX Labs Company
- Hong Kong Digital Asset EX
- Thousand Whales Technology (BVI)
With these new approvals, the total number of licensed virtual asset trading platforms in Hong Kong has now reached seven. Previously, the city had approved three other platforms: HashKey, OSL, and HKVAX.
Nick Ruck, director at LVRG Research, emphasized that the introduction of new trading platforms reflects Hong Kong's long-term vision and commitment to the digital asset space. He noted that the international race to establish the world's crypto hub has intensified, especially as companies look to jurisdictions like Singapore and Dubai.
The latest approvals were part of the "swift licensing process" implemented by the securities watchdog. Notably, in April, Hong Kong launched Asia's first spot Bitcoin and Ether exchange traded funds (ETFs), following the U.S. debut of its first spot Bitcoin ETFs earlier in the year. These ETFs are designed to track Bitcoin prices.
Analysts believe that increasing the number of trading platforms will lead to a reduction in crypto ETF management fees, making these investment products more appealing to investors.
In a broader context, Bitcoin has seen a remarkable surge of over 50% since the pro-crypto Donald Trump won the U.S. presidential election on November 5, reaching a record high of more than $107,000 recently.
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