“Hong Kong SEC will announce detail in about an hour regarding cryptocurrency exchange application criteria. Considering Huobi has already backdoor listed on HKex, this will definitely play them a huge favor to be the first legalized Chinese crypto exchange.”
The decision of the Hong Kong SEC to establish a direction for local crypto exchanges comes after the introduction of a national blockchain initiative by the Chinese government.
Is this big for the global crypto market?
Over the past two years, ever since the official imposition of a cryptocurrency trading ban by the government of China, most traders in the region are said to have moved into the Hong Kong cryptocurrency exchange market.
As said by Wan, the establishment of a clear guideline for crypto exchange applications could benefit exchanges that are used by Chinese investors like Huobi.
“Huobi is an effective Chinese exchange – run by Chinese team locally in mainland serves primarily Chinese customers. They spent huge effort to re-structure into a ‘foreign company’ after the 2017 China crypto ban. And the cost of the Hkex shell is not cheap too.”
It would also grant crypto exchanges a strong legal basis to operate within Hong Kong,