Hong Kong's Securities and Futures Commission (SFC) has approved four more crypto exchanges, further solidifying the city's objective to be a global hub for cryptocurrency trading. These newly licensed platforms include Accumulus GBA Technology (Hong Kong) Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
This decision brings the number of licensed virtual asset trading platforms in Hong Kong to seven. Earlier, The city approved three exchanges: HashKey, OSL, and HKVAX.
The rapid licensing procedure of SFC is part of Hong Kong's planned effort to remain competitive in the cryptocurrency race worldwide. According to Nick Ruck, director at LVRG Research, the approval of other platforms also shows the city's focus on building a robust digital asset environment.
Global players have observed growing competition from countries such as Singapore and Dubai, which recently offered accommodating legislation for cryptos. By expanding the number of licensed exchanges, Hong Kong aims to reinforce its status as a financial center and embrace the changes a new generation of virtual currency market brings.
The SFC has worked towards making Hong Kong a center for digital assets. Such steps keep the city relevant in a sector that is gaining more importance in the economy.
More trading platforms are expected to boost Hong Kong's attractiveness for cryptocurrency exchange-traded funds (ETFs). When there is enhanced competition between trading platforms, the management fees of these funds could be reduced, making them attractive to many investors.
Earlier this year, Hong Kong became the first jurisdiction in Asia to approve spot bitcoin and ether ETFs. These ETFs make it possible for investors to monitor the behavior of bitcoin prices without directly being involved with the bitcoin. Analysts say the infrastructure will increase the city's attractiveness among global cryptocurrency investors.
The most recent market trend further establishes the rising trend of cryptocurrencies such as Bitcoin. After the election of the pro-crypto U.S. President Donald Trump, the digital asset rose by over 50%. Bitcoin also surged on Tuesday, reaching the highest price of $107,000, hinting at a better perspective for the cryptocurrency market.