Hong Kong Licenses New Crypto Exchanges Amidst Bitcoin Surge

Hong Kong’s Securities and Futures Commission has licensed four new cryptocurrency exchanges: Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology.

According to local reports, the approvals were announced today and it raises the total number of licensed virtual asset trading platforms in Hong Kong to a total of seven. They were issued under Hong Kong’s wider plan to strengthen its rules on virtual assets and, in the process, boost the competitiveness of the city as a global digital asset center.

The SFC said its “swift licensing process” helped speed up the approvals while ensuring they met the rules.

“We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong,” said Eric Yip, SFC executive director of intermediaries.

The approvals come at a time when Bitcoin’s price is booming, having increased by over 60% in the last six months and recently going over $100,000 for the first time. The SFC needs the new licensed platforms to finish extra tasks, including checking for weaknesses and conducting tests by independent groups, before they can fully operate.

Thousand Whales Technology is the operator of the EX.IO trading platform. The company is backed by Valuable Capital Group, a brokerage owned by Sina Corporation, which operates China’s popular social media site Weibo.

The four exchanges were among almost 30 firms to have applied for VATP licenses in 2024, though some platforms, including OKX and HTX, have since dropped their applications due to regulatory issues.

Meanwhile, Hong Kong has previously licensed three platforms: HashKey, OSL, and HKVAX. Earlier this year, the city launched Asia’s first exchange-traded funds (ETFs) for spot Bitcoin and Ether, beating the United States for the same.

However, the city of Hong Kong has faced a lot of difficulties in properly regulating over-the-counter (OTC) crypto trading and is now changing its oversight approach after listening to industry feedback.