Key Takeaways
- SFC is in the process of reviewing applications from 14 crypto firms
- VATP license allows Hong Kong-based crypto entities to serve retail customers.
Bybit, a major player in the cryptocurrency exchange arena, is making strides in securing regulatory approval in Hong Kong. The exchange has recently applied for a Virtual Asset Trading Operator (VATP) license from the Hong Kong Securities and Exchange Commission (SFC).
Currently, the SFC is in the process of reviewing applications from 14 crypto firms, including OKX, all vying for the coveted VATP license. Notably, only two crypto exchanges in Hong Kong, OSL and HashKey Exchange, have successfully obtained licenses from the SFC thus far.
What makes the VATP license significant is its grant of authorization to Hong Kong-based crypto entities to serve retail customers. This sets it apart from the Virtual Asset Service Provider (VASP) license, which is restricted to serving professional investors.
For Bybit, attaining a VATP license in Hong Kong represents a pivotal milestone.
“The city’s strategic location and established financial infrastructure make it an ideal base for our operations and institutional clients, serving the Asia Pacific region”, reads the official statement.
In 2023, HongKong underwent notable regulatory transformations, creating opportunities for both institutional and retail investors to actively participate in the cryptocurrency market. This regulatory shift, coupled with a favorable stance, has positioned Hong Kong as an attractive destination for crypto companies, in stark contrast to the more restrictive approach seen in mainland China.Crypto trading and mining has been banned in China since 2021
