Crypto exchange HTX (formerly Huobi) has applied for a VATP license from the Hong Kong Securities and Futures Commission (SFC).
HBGL Hong Kong Limited, an affiliate of HTX, will operate in Hong Kong.
The official website of the SFC contains information that HTX has applied for a virtual asset trading platform (VATP) license for its local subsidiary, Huobi HK.
According to Cryptonews, HTX has joined other cryptocurrency exchanges applying for a VATP license in Hong Kong after the regulator tightened its requirements and introduced new rules for cryptocurrency companies.
Interestingly, HTX advisor Justin Sun said in June 2023 that it would take 6-12 months to obtain a license from the SFC. According to various estimates, the cost of such a process is about $25 million.
Previously, cryptocurrency exchanges Bybit and Crypto.com also submitted applications to the SFC to provide crypto services in Hong Kong. So far, only two companies, OSL and HashKey Exchange, have received licenses. This confirms the difficulty in meeting all the requirements of the regulator and its criteria.
OSL has been licensed since December 2020, and several brokerages, including Interactive Brokers, are using a partnership with OSL to launch digital asset trading for retail clients in Hong Kong. The HashKey exchange was licensed in November 2022.
Hong Kong regulators approved retail cryptocurrency trading in August 2023, which has attracted new firms to the country. However, doubts have been raised among experts about the effectiveness of Hong Kong's crypto policy.
The difficulties that cryptocurrency companies face in obtaining a license have raised concerns. For example, Wang Yang, Vice President of the Hong Kong University of Science and Technology, believes that the licensing requirements are too onerous and the system will not be productive. He used the term "license to kill" to highlight the problems and costs that exchanges face.
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