CoinEX launches BitHK — a new digital asset trading platform for Hong Kong users
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Cryptocurrency exchange platform CoinEX has created a new service targeting users in Hong Kong. The service in question is a brand-new digital asset trading platform known as BitHK. The platform still lacks the license to operate, but it intends to apply for a Virtual Asset Service Provider (VASP) license from the local securities regulator, the Securities and Futures Commission (SFC).
The application should take place on June 1st, and once approved, BitHK will be able to offer spot trading and digital asset storage services. The services would be available in English and traditional Chinese. BitHK aims to expand its offering even further moving forward. CoinEX’s CEO, Haipo Yang, commented on the matter stating that “BitHK is constantly improving and plans to introduce P2P crypto trading on top of spot trading to support both HKD deposits and withdrawals.”
He added that BitHK is integral to Hong Kong’s financial services industry. As such, it has an obligation to uphold the city’s image, which is that of an internationally recognized financial hub that is open and inclusive toward everyone.
The timing of the new service’s launch is also quite interesting. It happened just as the city reviewed its crypto regulations. After implementing some changes, it allowed retail investors to join the digital asset trading markets, as it was stated in the consultative process detailed in 2022.
Hong Kong is becoming a major crypto hub in Asia
With the new laws in place, Hong Kong is trying to re-establish itself as a crypto-friendly region and one of the largest crypto hubs in Asia. Its officials stated last October that Hong Kong wants to bring new regulations to the crypto sector, similar to those that govern the traditional finance sector. Hong Kong’s Secretary for Financial Services and Treasury, Christian Hui, also said earlier this year, in March, that many companies are interested in setting up operations in the city.
Only days later, during the Aspen Digital Web3 Investment Summit, Hui said that, starting in February 2023, Invest Hong Kong was contacted by more than 80 crypto-related companies interested in launching their businesses in the city. Some of them came from Mainland China, while others came from international markets.
As for what types of firms wanted to come, that includes anything, from crypto exchanges to wallet and payment service providers, and all kinds of blockchain infrastructure firms.
However, CoinEX has not been so lucky in other regions. For example, it was recently sued in the US by the New York Attorney General, Letitia James. James filed a lawsuit against the company for operating an unregistered business, which is against state laws. She now seeks a ban on the platform in the state of New York.
New York is known for being quite strict about which platforms can offer services within its borders. In order to get its famous BitLicense, a crypto firm has to go through a difficult and strict process and be 100% compliant with the local laws.
