The number of cryptocurrency exchanges in Hong Kong seeking operational licenses is steadily decreasing as the deadline approaches. Three exchanges, IBTCEX, QuanXLab, and Huobi HK, have recently withdrawn their applications with the Securities and Futures Commission of Hong Kong (SFC). This decision was made despite their initial applications being filed in February 2024. The reasons behind these withdrawals have not been disclosed on the HKSFC’s website. It is important to note that all cryptocurrency exchanges that have not applied for a license must cease operations in Hong Kong by May 31.
As of now, there are 21 crypto exchanges in line for a license in Hong Kong. This includes prominent global players like Bybit, Crypto.com, Matrixport HK, HKX, and OKX. The most recent license application was submitted by Bitcoin World Technology Limited on behalf of the crypto exchange bitcoinworld on May 17.
In other news, the Hong Kong Monetary Authority (HKMA) has recently launched a pilot program for the digital yuan, marking the first deployment of a Central Bank Digital Currency (CBDC) outside of mainland China. Hong Kong residents can now create an e-CNY wallet using just their mobile phone number. While these wallets currently facilitate cross-border payments, they cannot be used for person-to-person transactions. However, with the pilot program, Hong Kong residents will be able to use their digital yuan wallets for transactions, which can be topped off through 17 retail banks using the Faster Payment System (FPS). Eddie Yue, the chief executive of the HKMA, has stated that the e-CNY application and wallet will gradually gain more functionality as the HKMA and the People’s Bank of China (PBoC) collaborate on increasing retail merchant adoption.
In unrelated news, there is a documentary on Amazon Prime about the collapse of FTX, titled “The $2,500 doco about FTX collapse,” with assistance from the filmmaker’s mother.