Hong Kong greenlights four cryptocurrency exchanges to boost digital asset trading

Hong Kong’s securities regulator on Wednesday approved four cryptocurrency exchanges in the city’s latest effort to stay competitive in a race to become a global centre for digital asset trading.

Hong Kong has been promoting itself as a hub for assets such as cryptocurrencies in a effort to maintain its attractions as a financial centre.

The Hong Kong Securities and Futures Commission said it had granted licences to Accumulus GBA Technology (Hongkong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).

This brings the total licensed virtual asset trading platforms in the city to seven. Hong Kong previously approved three trading platforms - HashKey, OSL and HKVAX.

The introduction of new participants demonstrates Hong Kong’s long-term vision and commitment to digital assets, said Nick Ruck, director at LVRG Research, adding the international race to become the world’s crypto hub has intensified as companies have flocked to other jurisdictions, such as Singapore and Dubai.

The securities watchdog said the latest approvals were under its “swift licensing process”.

In April, Hong Kong launched Asia’s first spot bitcoin and ether exchange traded funds (ETFs), following the US debut of its first spot bitcoin ETFs three months earlier. Such ETFs are products that track bitcoin prices.

Analysts have noted that increasing the number of trading platforms will help reduce crypto ETF management fees, making the ETFs more appealing.

Bitcoin has surged more than 50% since pro-crypto Donald Trump won the US presidential election on Nov. 5. It hit a record high of more than $107,000 on Tuesday.