Cryptocurrency exchange Bybit has officially submitted an application for a Virtual Asset Service Provider (VASP) license in Hong Kong, as indicated in regulatory filings. Bybit’s application places it among the 14 entities seeking approval from the Securities and Futures Commission (SFC) to operate in Hong Kong. The exchange aims to provide its services in the region through Spark Fintech Limited, according to the filing made on January 31.
While the timeline and approval status of Bybit’s application remain uncertain, it joins other crypto businesses, including OKX, in the queue awaiting regulatory clearance. Currently, only two companies, OSL Exchange and HashKey Exchange, have secured a crypto trading license from the SFC. At present, Bybit has not issued public statements regarding the application.
Bybit had previously expressed its interest in expanding services in Hong Kong back in April 2023, outlining plans to establish its central Asian business in the region. Bybit CEO Ben Zhou emphasized the significance of liquidity in the exchange sector, praising Hong Kong for its well-developed capital markets, high financial literacy levels, and a substantial number of informed investors.
However, criticisms of Hong Kong’s cryptocurrency regulation have emerged within the crypto market. Wang Yang, vice president of the Hong Kong University of Science and Technology, described the existing licensing system as burdensome and counterproductive, coining the term “Licensed to Be Killed” to illustrate the challenges faced by licensed exchanges like OSL. These criticisms highlight the evolving regulatory landscape in Hong Kong and the diverse perspectives within the crypto industry.
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