Bybit Applies For VATP License in Hong Kong

Bybit has applied for a license as a virtual asset trading operator in Hong Kong according to the Securities and Futures Commission (SFC).

According to the Hong Kong Securities and Exchange Commission (SFC), the cryptocurrency exchange known as Bybit has applied for a license to operate as a virtual asset trading operator (VATP).

According to the website of the Securities and Futures Commission (SFC), Bybit submitted its application for the license on January 31 through the company Spark Fintech Limited.

14 VATP applications including filings from the cryptocurrency exchange OKX, are being reviewed by the banking authorities. The Securities and Futures Commission (SFC) has granted licenses to only two cryptocurrency exchanges in Hong Kong. Bybit just recently applied for the VATP license.

These exchanges include the OSL exchange, which was granted a license on December 15, 2020, and the HashKey exchange which was granted a license on November 9, 2022. Bybit still awaits for approval.

Compared to the Virtual Asset Service Provider (VASP) license, which exclusively permits businesses to service professional investors, the VATP license grants Hong Kong-based companies the ability to serve retail consumers.

To be considered a professional investor in Hong Kong, investors are required to have portfolios that are worth a minimum of eight million Hong Kong dollars, which is equivalent to just over one million three hundred thousand USD.

Because of the city-state’s pro-crypto regulatory posture, which contrasts with mainland China’s crackdown on digital assets, Hong Kong will emerge as a prominent location for cryptocurrency enterprises in 2023.

This is because Hong Kong operates as a city-state. In 2023, the Securities and Futures Commission (SFC) enacted regulations focused on cryptocurrencies, which enabled retail and institutional investors to engage in the cryptocurrency market.

On December 22, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), which is the de facto central bank of Hong Kong, both indicated their readiness to welcome applications for cryptocurrency exchange-traded funds (ETFs).

This meant that Hong Kong was already prepared for the submission of ETF applications. Because of the city-state’s pro-crypto regulatory posture, which contrasts with mainland China’s crackdown on digital assets, Hong Kong will emerge as a prominent location for cryptocurrency enterprises in 2023.

This is because Hong Kong operates as a city-state. In 2023, the Securities and Futures Commission (SFC) enabled retail and institutional investors to engage in the cryptocurrency market by enacting further regulations focused on cryptocurrencies.

Other businesses have already begun producing exchange-traded funds (ETFs) based on futures contracts in Hong Kong. Samsung Asset Management is believed to have said in January 2023 that it would not “eliminate the possibility of exploring launching a spot ETF.”

Samsung made this announcement when they introduced the Samsung Bitcoin Futures ETF.