Does Hong Kong’s slow approach to crypto regulation risk stifling digital asset growth? #HongKong2024

Hong Kong risks falling behind in crypto as the city is urged to speed up regulation to keep pace with the rapidly evolving industry.
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Hong Kong-based First Digital Trust expressed hopes that the city will accelerate the regulation of the digital assets sector.
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Hong Kong, aiming to position itself as a global hub for cryptocurrency, currently has only two fully licensed virtual asset trading platforms: Hash Blockchain and OSL Digital Securities. Many other crypto exchanges are still awaiting full operational licenses in the city.
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“It is understandable its (Hong Kong’s) current approach to regulation in trading is more conservative and slower than some other jurisdictions since it prioritizes the protection of investors,” Vincent Chok, CEO of First Digital, told Cointelegraph in an exclusive interview. However, he pointed out:

“We hope to see regulation move faster to ensure it does not fall behind the industry’s fast pace of development.” 

As of June 1, operating an unlicensed virtual asset trading platform (VATP) in Hong Kong became a criminal offense. Meanwhile, Hong Kong’s Securities and Futures Commission published an “alert list” that names “suspicious virtual asset trading platforms” or unlicensed entities operating in Hong Kong. SFC said these entities could be targeting Hong Kong investors. 

Will Hong Kong emulate Dubai? #Dubia

On July 17, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) published their findings on local stablecoin regulation.

A week later, on July 24, Jingdong Coinlink Technology Hong Kong Limited, a JD Technology Group subsidiary, announced plans to issue a 1:1 stablecoin pegged to the Hong Kong dollar (HKD). The HKMA recognizes the company as a participant in the sandbox program.

Crypto Exchange Bybit Obtains Provisional Approval From Dubai’s Regulator VARA. #VARA

The exchange stressed this is "non-operational" approval but allows Bybit to move closer to obtaining a full VASP license. #VASP

Cryptocurrency exchange Bybit said it has taken a step toward strengthening its presence in Dubai by securing provisional approval from the Virtual Assets Regulatory Authority (VARA).

The exchange stressed this is “non-operational” approval but allows Bybit to move closer to obtaining a full Virtual Asset Service Provider (VASP) license. This will allow the company to offer virtual asset exchange services to retail, institutional, and qualified investors in Dubai.

Why Dubai? #Dubia

Dubai has emerged as an important location for cryptocurrency and blockchain firms due to its policies, regulatory clarity, and strategic positioning.

Bybit, which established its global headquarters in Dubai in 2022, has been an active participant in the city’s growing crypto ecosystem. #ecosystemgrowth

“Dubai’s strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector,” said Helen Liu, chief operating officer of Bybit.


“With its robust regulatory framework and commitment to becoming a blockchain capital, Dubai is the ideal place to advance digital currencies and foster growth in this exciting industry,” adds Liu. #Lui
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At a recent panel discussion during Korea Blockchain Week (KBW2024) Binance CEO Richard Teng praised Dubai and its regulatory framework for digital assets.
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Commenting on the Middle East, Teng pointed to innovative regulatory approaches in countries like Abu Dhabi, Bahrain, and Dubai. He praised Dubai’s establishment of VARA which is dedicated solely to overseeing the crypto industry.