Justin Sun, CEO of cryptocurrency exchange Huobi, has revealed his intention to become a licensed member of the Hong Kong cryptocurrency market and create a separate platform, Huobi Hong Kong, for major investors. Huobi was one of the first to apply for a digital currency trading licence in Hong Kong. According to crypto journalist Colin Wu, only OSL and HashKey have received such permission so far.
Shortly afterwards, the Hong Kong Securities and Futures Commission (SFC) announced the launch of a public opinion poll on new rules for digital asset trading platform operators.
From June 1, all centralised platforms transacting in Hong Kong or interacting with its investors will be required to hold an SFC licence under the new rules.
The Commission said that those organisations planning to apply for a licence should start preparing their systems for the new system, while those not planning to apply should be prepared to stop their activities in Hong Kong.
Huobi is introducing a new trading platform called Huobi Hong Kong, specifically designed for institutional investors and wealthy individuals from Hong Kong.
According to a recent report, Huobi described Hong Kong as a "sleeper financial centre" because of tough regulatory measures against the cryptocurrency sector in mainland China. However, the exchange expects demand for cryptocurrencies to grow following the passage of certain regulations.
In October 2022, Arthur Hayes, former head of BitMEX, said that Hong Kong's intention to legalise virtual currencies could potentially provoke a new bull market. Gemini and Coinbase executives also expressed a similar view, stating that the US risks losing its status as a financial centre, while Asia, particularly Hong Kong, is fast becoming a leader in the industry due to well-defined regulations and ambitions to develop the crypto services market.
