Crypto Exchanges Skip Hong Kong License Race

The queue for operational licenses shrinks as seven crypto exchanges skip the Hong Kong license race and withdraw applications ahead of the May 31 deadline.

As the deadline approaches, the number of cryptocurrency exchanges applying for operational licenses in Hong Kong continues to decline.

Three cryptocurrency exchanges recently notified the Securities and Futures Commission of Hong Kong (SFC) of their withdrawal of license applications. The applications placed forth by the cryptocurrency exchanges IBTCEX and QuanXLab in February 2024 were subsequently retracted on May 13.

The following day, Huobi HK, a cryptocurrency exchange that listed connections to HTX, did the same, as illustrated in the screenshot below.

In 2024, seven cryptocurrency exchanges withdrew their applications for Hong Kong licenses. However, the HKSFC website did not explain the withdrawal. By May 31, all unlicensed cryptocurrency exchanges must cease operations in Hong Kong.

At present, twenty-one cryptocurrency exchanges are vying for licenses in Hong Kong. Prominent international entities such as Bybit, Crypto.com, Matrixport HK, HKX, and OKX are in the queue.

On May 17, Bitcoin World Technology Limited, acting on behalf of the Bitcoinworld cryptocurrency exchange, submitted the most recent application.

The Hong Kong Monetary Authority (HKMA) recently initiated a digital yuan pilot program. This is the inaugural implementation of the CBDC beyond the borders of mainland China.

At this time, the sole requirement for Hong Kong residents to establish an e-CNY wallet is their mobile phone number. While this service enables cross-border payments, it is unsuitable for in-person transactions.

Conversely, implementing the pilot program will empower inhabitants of Hong Kong to conduct transactions using their digital yuan wallets, which can be replenished via the Faster Payment System (FPS) at seventeen retail institutions.

Eddie Yue, the chief executive officer of the HKMA, asserts that as the HKMA and PBoC work to facilitate greater retail merchant adoption, the e-CNY application and wallet will progressively acquire more capabilities.