Matrixport is hurrying to apply for a crypto license before Hong Kong’s strict February 29 deadline. Last year, Hong Kong introduced new rules for virtual assets. These rules say that companies selling or promoting cryptocurrencies to people in Hong Kong must apply for a license by February 29.
If they don’t, they must stop working in the city by June 1 this year. Hong Kong is making its crypto rules stricter to direct trades through licensed exchanges. So far, only two crypto exchanges in Hong Kong have gotten digital asset licenses by February 28, 2024.
Matrixport HK’s license application
Matrixport HK, part of Flying Hippo Technologies Limited, has applied for a license to operate a virtual asset trading platform in Hong Kong. As Hong Kong follows strict crypto industry rules, this is an important step for the company.
The application was sent just before the deadline of February 29, 2024. Now, Matrixport HK is among 21 other companies applying for the same license from the Hong Kong Securities Regulatory Commission. Currently, Matrixport HK has its headquarters based in Singapore and serves customers in Asia and Europe, but wants to expand to Hong Kong too.
Only two crypto exchanges have been licensed in Hong Kong so far. These are OSL Digital Securities Limited and Hash Blockchain Limited. Following the rules is essential for companies who want to meet the deadline. After February 29, any company without a license will have to stop operating by May 31.
Companies that have applied and withdrawn applications
In a related development, HBGL Hong Kong Limited which is a part of Justin Sun’s HTX, canceled its request to run Huobi HK on February 23. They withdrew their application just three days after submitting it, according to the Securities and Futures Commission (SFC). The SFC shares information about who wants to run crypto exchanges in Hong Kong. But HTX didn’t say why they withdrew.
The SFC said three other crypto exchange operators also took back their applications, and one got sent back. Even though only a few international crypto companies are applying, Hong Kong is still attractive for companies tied to China. After China cracked down on the industry, a lot of companies moved their main offices overseas.
Some big companies applied for licenses like OKX, which started in Beijing in 2017 and is now based in the Seychelles. They applied in November. Another company HKVAEX, linked to Binance which is a big exchange from China, applied just last month. And Crypto.com, which started in Hong Kong and is now in Singapore, applied this month too. According to the SFC, 18 companies have applied as of Monday.
