As the deadline for obtaining operating licenses in Hong Kong approaches, the number of cryptocurrency exchanges seeking these licenses is dwindling. Recently, three exchanges withdrew their license applications from Hong Kong’s Securities and Futures Commission (SFC). IBTCEX and QuanXLab withdrew their applications on May 13, while Huobi HK, associated with HTX, followed suit the next day. This adds to the seven exchanges that have already withdrawn their applications for 2024 Hong Kong licenses. The reasons for these withdrawals remain undisclosed by the Hong Kong Securities and Futures Commission.
Despite the withdrawals, there are still 21 cryptocurrency exchanges waiting to obtain licenses in Hong Kong. These include well-known exchanges such as Bybit, Crypto.com, Matrixport HK, HKX, and OKX. The most recent application, filed on May 17 by Bitcoin World Technology Limited for the “bitcoinworld” exchange, adds to the ongoing regulatory landscape in the region.
Simultaneously, the Hong Kong Monetary Authority (HKMA) has launched a digital yuan pilot program, marking the first deployment of a Central Bank Digital Currency (CBDC) outside mainland China. Residents can create electronic RMB wallets with just a mobile phone number, facilitating cross-border payments. However, these wallets are currently not usable for person-to-person transactions.
Through the pilot program, Hong Kong residents will be able to conduct transactions via digital yuan wallets and top up using the Faster Payment System (FPS) through 17 retail banks. As the program progresses, electronic renminbi apps and wallets will gain additional features. HKMA chief executive Eddie Yue highlighted the gradual adoption efforts by retailers, showcasing the evolving landscape of digital currencies in the region.
