- Bybit has been eyeing an expansion to Hong Kong amidst the regulatory crackdown on crypto in the US.
- Hong Kong is hoping to become a crypto hub again and has been trying to lure more crypto entities.
- Some platforms have expressed concerns that the proposed regulations in Hong Kong may be too conservative.
Dubai-based crypto exchange Bybit has recently announced plans to expand its operations to Hong Kong. Along with this expansion, the platform aims to establish a research and development forum, as well as marketing groups that will operate in the city.
Bybit’s move to Hong Kong comes amidst the current regulatory climate, with the ongoing regulatory crackdown on crypto in the United States playing a significant role in their efforts to attract more crypto entities.
Bybit Secures License in Hong Kong for New Regulation
Hong Kong was once a hub for many well-known crypto firms, such as BitMEX, FTX (now defunct), and Crypto.com. However, the city has since seen increased competition from Singapore, along with concerns regarding China’s strict approach to crypto, leading to many entities leaving Hong Kong. Additionally, the stringent and prolonged response to Covid-19 has also contributed to a crypto entity exodus.
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Bybit plans to obtain a license in Hong Kong in line with the latest proposed regulations set to be implemented in June. According to Ben Zhou, the CEO and co-founder of Bybit, Hong Kong is rich in liquidity and exchange business, particularly for capital belonging to international investors.
Hong Kong Aims to Regain Crypto Industry Position with Proposed Regulations
Zhou stated that he appreciates the city’s advanced capital markets for their financial literacy and many professional investors. However, some platforms consider the proposed regulations of the city to be very conservative as they will supposedly be restricted to top tokens like Bitcoin and Ether.
Currently, Hong Kong is expressing its intention to regain its previous position in the crypto industry. The regulatory agencies in the US have terminated access to crypto-based services and products, and watchdogs are targeting crypto-friendly banking institutions. Celebrities who have endorsed digital assets have also faced allegations. As a result, Bybit and other crypto platforms have moved to other suitable locations to expand the crypto sector.
On the Flipside
- The regulatory crackdown on crypto in the United States is not the only factor that has contributed to the relocation of crypto exchanges from the country.
- While Hong Kong’s liquidity and capital markets are attractive to international investors, they also expose the city to global financial risks and uncertainties.
Why You Should Care
Bybit’s expansion into Hong Kong is significant for the company’s growth as it seeks to obtain a license in line with the proposed regulations that will be implemented in June.
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This move is also essential for the global crypto industry as it shows the shifting landscape of crypto-friendly jurisdictions, with Hong Kong trying to position itself as a viable alternative to other major crypto hubs.
To learn more about the growing interest in Hong Kong as a crypto hub and how over 80 firms plan to enter the market, read here:
Hong Kong’s Crypto Hub Dream Realized as 80 Firms Plan Entry into City
Discover how Japan is planning to join the ranks of crypto-friendly nations by reading our article on its efforts to develop a central bank digital currency:
Japan’s Plans for CBDC Panel to Examine Digital Yen Issuance
