HTX, a leading cryptocurrency exchange formerly known as Huobi, has recently applied for a crypto license for its local branch in Hong Kong. The application, submitted on Feb. 20, aims to establish HBGL Hong Kong Limited as the operating entity in the region.

Seeking Approval from SFC

According to the Securities and Futures Commission (SFC) of Hong Kong, HTX is seeking a virtual asset trading platform (VATP) license for its subsidiary, Huobi HK, which will be operated by HBGL Hong Kong Limited. This move positions Huobi as one of the latest crypto companies to pursue a VATP license in Hong Kong following the announcement of a new regulatory regime in late 2022.

Increasing Interest in Hong Kong

HTX’s application comes in the wake of Bybit, another crypto exchange, also applying for a license from the SFC to operate in Hong Kong. Despite the growing interest from crypto companies, only two exchanges, OSL and HashKey Exchange, have been granted licenses in Hong Kong so far, in December 2020 and November 2022, respectively.

Criticisms and Challenges

While the crypto industry in Hong Kong is expanding, criticisms have emerged regarding the effectiveness of the licensing system. Wang Yang, vice president of the Hong Kong University of Science and Technology, has raised concerns about the burdensome nature of the current system, labeling it as counterproductive. He coined the term “Licensed to Be Killed” to emphasize the challenges faced by licensed exchanges like OSL, which have experienced significant losses post-approval.

As the cryptocurrency landscape continues to evolve, the application for a crypto license by HTX in Hong Kong signals a growing interest in the region. Stay tuned for more updates on the latest developments in the crypto industry on Global Crypto News.

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