A Dubai-based crypto exchange Bybit stated that it is operating to start its activities in Hong Kong. The platform is also planning to establish a research & development forum along with forming marketing groups that will work in Hong Kong. Taking such endeavours at this time points toward the current regulatory scenario. The ongoing regulatory crackdown on crypto in the United States has played a significant role in Hong Kong’s efforts to allure more and more crypto entities.

Bybit to Get a License within Hong Kong Jurisdiction to Operate under New Regulation

Once the city was a hub for several well-known firms, taking into account BitMEX, now-defunct FTX, and Crypto.com. However, the mounting rivalry from Singapore and the apprehensions about the strict approach of China to crypto have been the dominant factors causing the city to pull back. In addition to this, Hong Kong’s stringent and prolonged reaction to Covid-19 has also paved the way for several crypto entities to quit.

At present, Hong Kong is expressing its intention to regain its previous position as opposed to the United States. Just in recent weeks, the regulatory agencies in the US have terminated access to crypto-based services and products. Moreover, the watchdogs are additionally aiming at crypto-friendly banking institutions. They have also levelled allegations against celebrities that have supposedly promoted digital assets. In this respect, Binance Holdings Ltd. (the platform operating the biggest crypto exchange) is also facing a lawsuit.

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This whole situation pushed Bybit and other such crypto platforms to move to other suitable places to expand the crypto sector. Bybit was founded back in 2018 and now it has a strategy to get a license in Hong Kong in line with the latest proposed regulations that will be implemented in June. Ben Zhou, the chief executive officer and the co-founder of Bybit, stated that Hong Kong is abundant in liquidity and exchange business in the case of capital belonging to international investors.

Some Firms Label New Rules to Be Very Conservative

He additionally appreciated the advanced capital markets of the city for their prestigious financial literacy as well as many professional investors. Nonetheless, some platforms view the proposed regulations of the city to be very conservative as they will supposedly be restricted to much liquid as well as top tokens like Bitcoin and Ether. As the securities watchdog accomplishes its regulations, others wait to see whether exchanges can just serve native citizens.