Hong Kong Crypto Exchange Licensing: Too Strict, Says Lawmaker
CryptoNewsTerminal Staff03 Jun, 2024
Hong Kong Crypto Exchange Licensing: Too Strict, Says Lawmaker
The current licensing regime for cryptocurrency exchanges in Hong Kong is overly strict, according to lawmaker Duncan Chiu. This has made it difficult for major global exchanges to establish a presence in the city, eroding Hong Kong's reputation as a financial hub. Chiu pointed to the "huge gap" in technological knowledge and market experience between the crypto industry and regulators, making communication difficult. He also noted that several exchanges, including Binance, OKX, and Gate.io, have withdrawn their license applications after the Securities and Futures Commission (SFC) required applicants to pledge not to facilitate services for mainland Chinese users anywhere in the world. This strict approach has hindered Hong Kong's ability to attract and retain leading crypto businesses, potentially stifling innovation and economic growth in the sector.
