Crypto.com Applies for Hong Kong License... Because it Has To
Crypto.com has applied to the Hong Kong Securities and Futures Commission (SFC) for a virtual asset trading platform (VATP).
The US crypto exchange submitted its application on 9 February, following a staunch warning from the Hong Kong regulator: exchanges that have not applied for a virtual asset trading platform licence by 29 February, will be forced to shut down by 31 May.
Julia Leung, the SFC’s chief executive officer, said in a statement, “The Commission would be on a stronger footing to keep investors out of harm’s way and bring wrongdoers to justice when financial crimes nowadays come in any shape and form, as well as to bring the full range of resources and tools at its disposal to achieve positive regulatory outcomes.”
17 exchanges including Bybit, Bullish, OKX and VAEX have joined the race for regulatory approval. Currently, only two firms hold Hong Kong licenses: OSL and HashKey Exchange.
The SFC also warned investors to check if the platforms they are using have applied for a VATP license, as exchanges can still operate whilst applying.
“For investors dealing with VATPs operating in Hong Kong which are not on the [application list], they are urged to make preparations early, before 31 May 2024, such as by closing their accounts with these VATPs or transferring to SFC-licensed VATPs for trading virtual assets,” the SFC said.
Well-Supported
Crypto.com may have been operating without a license in Hong Kong, but its overall growth trajectory and partnerships seem to be paying off.
In an interview with Cointelegraph, Crypto.com COO Eric Anziani said the firm's joint campaigns with sports giants are proving to be fruitful.
“We’ve been fortunate to find these amazing partners. F1, the UFC, working in LA with the Crypto.com Arena and AEG,” Anziani said.
“For a brand to be built in just a couple of years is very difficult and very challenging to maintain. Staying top of mind for users is very challenging, and I think those investments have clearly paid off.”
“We have also seen a lot of activations with those brands being integrated, being relevant to the fans and the participants. It has been tremendous in terms of being able to bring people into the space through these partnerships,” he added.
Crypto.com's user base is approaching 100 million according to Anziani. Last month, the exchange launched Crypto.com Prime - a higher-tier, invite-only program requiring a $1 million deposit.
“When I want to do a large trade, a block trade, I need super low fees, I need deep liquidity. So we aggregated all the books and gave them two basis points,” Anziani explains.