TL;DR
- SEBA Hong Kong, a subsidiary of a crypto-friendly Swiss bank, got the first approval to offer virtual asset services.
- Due to Hong Kong’s strategic location, the region can be a gateway to China’s future crypto market.
SEBA Hong Kong Gets an AIP from Hong Kong’s Regulator
SEBA Hong Kong is a local arm of a crypto-friendly Swiss-based bank, SEBA. Hong Kong’s Securities and Futures Commission (SFC) granted it an Approval-in-Principle (AIP) for crypto-related services in the country.
This preliminary approval has paved the way for SEBA to become one of the first licensed corporations in the country to provide crypto trading services.
This preliminary approval makes SEBA Hong Kong eligible to apply for the license to conduct regulated activities. These activities include managing virtual assets, advising on them, and operating with over-the-counter derivatives.
Implications of the AIP Approval
The approval also signifies Hong Kong’s increasing role in the global crypto market as it sets the regulatory standards that can be followed worldwide.
The SEBA Hong Kong branch CEO, Amy Yu, hailed the region’s potential to lead the world’s crypto market.
We see enormous potential in Hong Kong’s journey to becoming a global crypto market leader and look forward to contributing to the trajectory. SEBA Hong Kong commends the example Hong Kong sets for regulatory standards worldwide and values the role of the license in expanding our regulated footprint across Asia Pacific.
Amy Yu, CEO APAC @SEBA Hong Kong
Hong Kong’s Gradual Acceptance of Crypto
Hong Kong authorities issued a series of policy statements regarding virtual assets in October 2022. It was one of the first moves to accept the trading of virtual assets in the country.
Following this move, Hong Kong’s Legislative Council passed a bill in December 2022. The amendment established a comprehensive mechanism for licensing platforms offering crypto retail trading services.
Currently, OSL and Hashkey are the country’s only fully licensed exchanges. Hashkey started offering retail trading in Bitcoin and Ethereum on August 28, 2022.
In addition to SEBA, Hong Kong Virtual Asset Exchange (HKVAX) received an AIP from SFC earlier this month.
Firstly, Hong Kong’s Securities and Futures Commission (SFC) stands out as one of the initial regulatory bodies that established a comprehensive framework for trading cryptocurrencies.
Secondly, the SFC plans to oversee the operations of trading platforms, fund management, and cryptocurrency transactions.
Finally, the primary goal behind these regulations is to safeguard investors’ finances and effectively manage their risk.
Is Hong Kong A Gateway to China’s Future Crypto Market?
Crypto trading is currently banned in China. Hong Kong, being located close to the mainland, can pave the way for it to tap into the Chinese market in the future.
The increasing popularity of virtual assets may force China to regulate its trading sooner or later. That’s when the firms licensed in Hong Kong can have an advantage.
But do you see Chinese authorities making such a move anytime soon? And if it happens, how can it affect the global crypto market?
