The most complete inventory: those institutions that first came to Hong Kong to “eat crabs”
Web3's integrated institutions, exchanges, project parties, and even traditional financial institutions have sniffed out the opportunity.
Written and edited by Babywhale, Foresight News
On June 1, Hong Kong's relevant policies on cryptocurrencies were officially implemented, opening the door to the trading and issuance of crypto assets. Although it is difficult for regulators in Hong Kong and around the world to achieve effective regulation that supports the development of crypto assets without hindering their progress, a bold attempt is always worth it.
As the financial center of Asia, developing the Web3 industry in an orderly manner under supervision helps attract capital, technology, and talent, and also helps bring Asian Web3 institutions and projects to the world. Since this year, many organizations have begun to step up the layout of the Hong Kong market. Foresight News has compiled these “first crab eaters” for you.
Web3 integrated organizationHashKey Group
As an organization that has always been at the forefront of the Web3 industry, HaskKey began the compliance journey of operating in Hong Kong in 2022.
April 2022,HashKey GroupAnnouncing that it has obtained an application from the Hong Kong Securities and Futures Commission in relation to its Hash Blockchain Limited (HBL) Type 1 (Securities Trading) and Type 7 (Automated Trading Service, ATS) license to operate a virtual asset trading platformApproval in principle(AIP), after meeting all conditions and receiving final approval, HashKey will provide crypto trading services to Hong Kong professional investors (including licensed financial institutions). The platform operated by HBL will provide virtual asset trading services, including crypto assets such as Bitcoin and Ethereum, stablecoins, and security tokens.
In September of the same year, HashKey Capital, the venture capital arm of HashKey, was regulated by the Hong Kong Securities and Futures Commission (SFC)ratifying, completed the Type 9 asset management license change, and 100% of its investment portfolio can be transferred to crypto-related virtual asset projects.
In November, Hash Blockchain Limited (HBL), a subsidiary of HashKey Group, was granted a license by the Hong Kong Securities and Futures Commission (Hong Kong Securities Regulatory Commission).ratifyingIt operates virtual asset trading platforms through Class 1 (securities trading) and category 7 (providing automated trading services) licenses to provide services to professional investors.
In February of this year, HashKeypronouncementsApproved by the Hong Kong Securities and Futures Commission, Hash Blockchain Limited (HBL) can conduct OTC (OTC) transactions on virtual asset platforms. The approval allows HashKey to conduct virtual asset trading operations other than trading platforms. When there is a demand for trading tokens not listed on the exchange, HBL can act as an intermediary to match the transactions between the two parties.
In April of this year, HashKey Group published an article称Its compliant trading platform HashKey PRO will be officially launched in the second quarter. HashKey PRO has been approved by the Hong Kong Securities and Futures Commission (SFC) to operate a virtual asset trading platform with Type 1 (securities trading) and type 7 (providing automated trading services) licenses. HashKey PRO provides fiat deposit and withdrawal support, allows users to transfer dollars directly to the HashKey PRO fiat wallet through SWIFT, and has established partnerships with ZA Bank and Bank of Communications (Hong Kong) to provide fiat deposit and withdrawal services as settlement banks.
This month, HashKey PRO, a compliant virtual asset trading platform regulated by the Hong Kong Securities and Futures Commission (SFC)pronouncementsSubmit a license application to provide retail services in Hong Kong under the Anti-Money Laundering and Combating the Financing of Terrorism Ordinance (Chapter 615), which came into effect on June 1.
Cobo
In April of this year,CoboCo-founder and CEO KamiyuvoicedIt is currently applying for more licenses in accordance with the existing regulatory framework, and plans to expand the Hong Kong team and accumulate more professional technical and business personnel.
Amber Group
In April of this year,Amber GroupIt said it is considering selling its Japanese subsidiary and plans to apply for a Hong Kong license after Hong Kong switches to creating a digital asset center. Additionally, Amber Group announced a partnership with technology consulting firm Thoughtworks during this year's “Web3 Hong Kong Carnival”Reach cooperationIt will jointly develop technical tools and solutions to promote the secure and transparent development of Web3 using artificial intelligence.
ExchangesBitget
In February of this year, Bitget Managing Director Gracy ChenvoicedBitget hired Hong Kong lawyers and compliance professionals in late 2022 to learn more about all relevant Hong Kong policies, and is preparing to apply for a Hong Kong virtual asset trading platform license.
bitgetX
In May of this year, the virtual asset exchange BitgetXGo onlineIts website also provides registration and trading services. The platform provides services to users in Hong Kong and currently supports traditional Chinese and English. The platform has launched spot trading services for more than 200+ currencies.
OKX
In February of this year,Xu Mingxingvoiced OKXIt has been applying for a Hong Kong crypto license since 2022. Afterwards, Lennix, Managing Director of OKX's Global Institutional Business Unit, tweetedvoicedThe OKX team actively prepared the Hong Kong license application a year ago, and has formed a dedicated team of more than 20 people responsible for the Hong Kong compliance process. The team members are all from SFC, SEC, international law firms or licensed financial institutions.
March, OKXpronouncementsSet up a Hong Kong entity to launch virtual asset services in Hong Kong, and intend to apply for a virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Ordinance 2022 (which will come into effect on June 1, 2023), and apply for Class 1 and 7 licenses under the Securities and Futures Ordinance.
Huobi Global
In February of this year, Huobi Global Advisor Sun Yuchen was interviewed by BloombergvoicedDigital asset exchange Huobi plans to expand its offices and operations in Hong Kong. After that, Sun Yuchen was on Twitter againvoicedHuobi Global has applied for a cryptocurrency trading license in Hong Kong and will be able to expand its services and products to Hong Kong customers to provide a wider range of cryptocurrency trading and investment options. Additionally, Huobi will launch a new exchange, Huobi Hong Kong, in Hong Kong.
April,Sun YuchenvoicedHuobi will open a new office in Hong Kong.
May, HuobipronouncementsHuobi Hong Kong website Huobi HK will be officially launched, and it is ready to provide users with a variety of cryptocurrency trading services. Starting June 1, users can buy, sell, and hold mainstream cryptocurrencies including BTC, ETH, and other major cryptocurrencies listed in independent indices through Huobi HK. After that, HuobiTweetedHuobi HK now provides spot trading and virtual asset custody services in Hong Kong. Currently, Huobi HK is applying for a virtual asset trading platform (VATP) license and is working with an independent auditor to develop security, compliance and anti-money laundering measures.
Sun Yuchen on CoinDesk TV this monthvoicedHuobi is likely to obtain a cryptocurrency trading license in Hong Kong by the end of this year as soon as the end of this year. He said Huobi submitted an application for a virtual asset service provider (VASP) last week, which includes an 18-month grace period for regulators to approve or decline the application. Sun Yuchen said that his prediction is that the license may be obtained within the next 6 to 12 months.
Gate.io
In August 2022, Gate.io's Hippo Financial Services alreadyobtainsIt has obtained a Hong Kong virtual asset escrow license and is permitted to provide virtual asset escrow services in Hong Kong.
In February of this year, Gate.ioTweetedGate has obtained a Hong Kong Trust and Company Service Provider (TCSP) license to provide escrow solutions covering a range of digital assets in Hong Kong. In the same month, Gate.io parent company Gate GrouppronouncementsIt will apply for a new cryptocurrency license in Hong Kong and launch Gate HK, a new platform designed for the Hong Kong market.
Bybit
In April of this year, cryptocurrency exchange BybitschemesApply for a license in Hong Kong in accordance with the proposed rules that came into effect in June, establish a core Asian business, and place part of its R&D and marketing team in Hong Kong.
Pionex
In March of this year, PionexfoundingThe Hong Kong subsidiary will apply for a virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Ordinance 2022. Meanwhile, Pionex has applied for a Class 1 license under Hong Kong's Securities and Futures Ordinance. After obtaining the license, Pionex will provide compliant and secure trading services in the Hong Kong market.
BitMEX
In May of this year, cryptocurrency exchangesBitMEXBitMEX Hong Kong will be launched for Hong Kong users when applying for the Hong Kong Virtual Asset Service Provider (VASP)Transition services. BitMEX said that from May 29, 2023, Hong Kong users will not be able to access the BitMEX website or API, after which all account balances will be transferred to BitMEX Hong Kong accounts, and users will need to access these services through the new BitMEX Hong Kong mobile app.
BitMart
In May of this year, cryptocurrency exchangesBitMart pronouncementsIts Hong Kong trading platform “BitMart Hong Kong” was officially launched to continue providing services to Hong Kong institutional investors and retail investors. Currently, BitMart Hong Kong supportsBitcoin、EthereumSpot trading of virtual assets such as LTC.
Australian cryptocurrency exchange Independent Reserve
In March of this year, Independent ReserveschemesExpansion of business in Hong Kong. Independent Reserve co-founder and CEO Adrian Przelozny said its team will visit Hong Kong by the end of March to meet with banks, regulators, lawyers and compliance experts to determine if it is appropriate to expand to Hong Kong.
Web3 projectsSTEPN
The Move to Earn app STEPN, which caught fire in early 2022, started in September of last yearpronouncementsIt will establish its first physical office in Cyberport, a startup accelerator wholly owned by the Hong Kong Government, as a regional headquarters outside of Australia. STEPN co-founder Jerry Huang said that after former Cyberport Chairman Mrs Carrie Lam visited Sydney and invited STEPN to open a physical office in Cyberport, the company was persuaded and acted upon.
Alchemy Pay
In March of this year, Alchemy PaypronouncementsIt has partnered with ZD Group, the parent company of investment fund Mouette Securities. ZD Group will invest and share its four financial licenses issued by the Hong Kong Securities Regulatory Commission and the Insurance Regulatory Authority, and Alchemy Pay will provide cryptocurrency payment solutions for all of ZD Group's businesses.
Dfinity
In April of this year, Dominic, founder and chief scientist of DFINITYTweetedWhile in Hong Kong, he completed three things, namely the plan to establish an Internet Computer Hub, which may enter Cyberport in the future; establish the ICP Asia Alliance (ICP Asia Alliance); and cooperate with local venture capital institutions to promote IC-based development projects.
Conflux
In February of this year,Conflux pronouncementsA blockchain-enabled SIM card, BSIM, will be launched in partnership with China Telecom. China Telecom will launch its first BSIM pilot project in Hong Kong later this year. The BSIM card integrates Conflux's Tree-Graph, dual PoS, and PoW technology to provide high system performance support for any blockchain. BSIM cards manage and store users' public and private keys within the card, and can also perform encrypted storage, key retrieval, and other operations.
OneKey hardware wallet
In May of this year, hardware wallet OneKey获Hong Kong Cyberport funded HK$500,000 and received office space provided by Cyberport. OneKey said it is stepping up communication with the local government in Hong Kong and is focusing on applying for relevant cryptographic licenses in Hong Kong.
digital asset companyCryptocurrency bank Seba
Swiss-based cryptocurrency bank Seba was in Hong Kong last NovemberopeningA new office was opened to drive its growth in the Asia Pacific region. Seba Hong Kong plans to initially focus on market research and consulting services. Seba's Swiss office provides a suite of regulated banking and investment services, including transactions, structured products, bank accounts, bank cards, credit, staking, and cryptocurrency and NFT escrow.
Encrypted data provider Kaiko
This March, KaikovoicedConsidering Hong Kong's push to become the center of the digital asset industry, it is planned to move its Asian headquarters from Singapore to Hong Kong. Kaiko provides encrypted data to institutions such as the Intercontinental Exchange (ICE) and Deutsche Börse.
Digital asset custodian service provider Liminal
In May of this year, wallet infrastructure and digital asset custody service provider LiminalpronouncementsThe Hong Kong TCSP (Trust or Company Service Provider) license enables the company to provide regulated digital asset escrow services in Hong Kong.
Digital asset broker LTP
In May of this year, the main digital asset broker LTP and OKX Hong Kong officiallydockingIt provides comprehensive services to Hong Kong institutional users, and is committed to providing services to more compliance entities and institutional investors.
First Digital, a digital asset trust
This month, Hong Kong digital asset trust First DigitalpronouncementsThe US dollar stablecoin First Digital USD (FDUSD) will be launched. It is a programmable stablecoin that is pegged to the US dollar. It aims to provide reserve support from assets of equal fair value, and reserves will be kept in separate accounts at Asian institutions.
Digital asset platform OSL
This month, the Hong Kong digital asset platform OSL applied to the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing license toobtainsDigital asset retail trading license.
Non-Web3 financial institutions and companiesDBS Bank
In February of this year, Sebastian Paredes, CEO of DBS Bank (Hong Kong)voiced, DBS Bank Singapore plans to apply for a Hong Kong digital asset license to provide cryptocurrency related services to Hong Kong users.
Yingtou Securities
In February of this year, Yingtou Securities was in Hong KongunveilsCryptocurrency trading enables professional investor clients of Hong Kong Yingtou Securities (individuals who can invest more than HK$8 million or Hong Kong resident institutions with assets over HK$40 million) to trade Bitcoin and Ethereum.
Investment brokerage firm Signum Digital
In March of this year, Signum Digital was awarded by the Hong Kong Securities Regulatory Commission (SFC)Approval in principleIt provides professional investors with a securities token (STO) sale and subscription platform. The issued tokens are traded on the blockchain and linked to various asset classes, such as private equity, real estate, art, and collectibles.
Tiger Securities
In April of this year, Tiger Securities (Hong Kong), a subsidiary of Tiger InternationalpronouncementsLaunching cash management services, the company also disclosed its intention to apply for a virtual asset trading platform license in Hong Kong. It is currently discussing related matters with relevant companies, or plans to carry out related promotion in June of this year.
Greenland Holdings
In May of this year, an executive of Greenland HoldingsvoicedA subsidiary of Greenland Holdings is planning to apply for a license to trade virtual assets in Hong Kong. Greenland Fintech will set up a new company to focus on virtual asset transactions, and the new department will submit an application to the Securities Regulatory Commission. If approved, the new company plans to trade cryptocurrencies, NFTs, and products related to carbon emissions.
Zhongan Bank of Hong Kong
In May of this year, ZA Bank of Hong Kong (ZA Bank)pronouncementsThe plan is to launch virtual asset trading services to retail investors. Through cooperation with local licensed virtual asset exchanges, ZA Bank will seek regulatory approval to enable retail investors to trade virtual assets using fiat currency through the ZA Bank App.
Asset management company Yibo Financial
Zhu Chengyu, Chairman of Asset Management Company Yibo Finance (VSFG)voicedIt is preparing to apply for a virtual asset service provider (VASP) license and a Class 7 (providing automated trading services) license to the Securities Regulatory Commission. Furthermore, Zhu Chengyu said that Yibo Finance is discussing with several Hong Kong exchange-traded fund (ETF) issuers and regulators to allow its funds that directly track Bitcoin's spot to be listed in Hong Kong in the form of ETFs.
