The Hong Kong Securities and Futures Commission (SFC) has issued a digital asset exchange license to Hong Kong Digital Asset Xchange (HKDAEx), even though the May. 31 deadline had already passed.
According to the regulator’s records, a Hong Kong-based company HKDAEx that is part of the Hong Kong Financial Asset Exchange Group, applied for this license on Aug. 27. However, the SFC may return the application if it is incomplete or if there are unresolved fundamental issues.
HKDAEx aims to bridge the gap between physical and digital assets, enhancing liquidity and boosting the value of physical assets to support the real economy.
New crypto licensing rules in Hong Kong
As of June. 1, running an unlicensed virtual asset trading platform (VATP) in Hong Kong is now illegal. Some companies have received initial approval from the city’s regulator but are still awaiting their full licenses. Until then, they can operate under a temporary arrangement if they were active in the region before the new licensing rules came into effect.
Currently, only two virtual asset trading platforms in Hong Kong hold full licenses: OSL Digital Securities and Hash Blockchain. Several crypto exchanges, such as Crypto.com, PantherTrade, Bullish, Accumulus, DFX Labs, Bixin.com, HKbitEX, YAX, WhaleFin, Matrixport HK, and EX.IO, are still waiting to obtain full operational licenses in Hong Kong.
Hong Kong leading the cryptocurrency adoption
Hong Kong is setting itself as a global leader in cryptocurrency, marking investors and companies to its growing digital assets scene. With Progress in digitalization and tokenization, the city has the potential to become a key player in free trade and a testing ground for new financial technologies.
According to the 2024 Henley Crypto Adoption Index by Henley & Partners, Hong Kong is the second highest globally for cryptocurrency adoption, trailing only Singapore. The city scored top marks for economic factors and tax benefits, creating a strong public interest in crypto.
Related | Crypto heists hit $1.2B, raising adoption concerns: Immunefi
