Hong Kongs Securities and Futures Commission (SFC) will release guidance on the crypto licensing framework in May.
Hong Kongs SFC CEO, Julia Leung, disclosed this at an event reported by Bloomberg on April 27. According to her, there is an ongoing consultation process for the regulatory framework for crypto entities in the city, and there have been more than 150 responses so far.
The regulator said the new regulatory framework will become effective by June 1. This would mandate crypto platforms to register with the authorities of the city.
With the law, licensed exchanges can offer cryptocurrency trading of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to retail traders.
Meanwhile, this is part of Hong Kongs effort to become a financial hub for cryptocurrency in Asia. Two exchanges — Hashkey and OSL — already offer crypto trading services under the supervision of the Hong Kong SFC.
But more exchanges might follow, mainly because the citys banking sector also offers support for crypto firms. Several crypto firms are struggling for new banking partners following the U.S. banking crisis.
Binance CEO Changpeng ‘CZ’ Zhao previously said more funds would move to Hong Kong as banks in the region support crypto.
BitGet launches a platform for Hong Kong users
Crypto exchange Bitget said it would no longer provide services for Hong Kong users because of the new regulatory demands.
According to the exchange, its Hong Kong users must transition to its subsidiary, BitGetX HK.
“BitgetX Hong Kong intends to apply for the license under the Hong Kong Virtual Asset Service Provider (VASP) regime and will operate under the transitional arrangement that will be created under the Hong Kong VASP regime until its license application is approved.”
Meanwhile, Wu Blockchain reported that other offshore exchanges have also started restricting Hong Kong users because of regulatory demands.