Hong Kong's securities regulator has approved four additional cryptocurrency exchanges in the city's latest effort to become a global centre for digital assets.
Hong Kong has been promoting itself as a hub for cryptocurrencies for several years and has enacted pro-crypto legislation.
Now, the Hong Kong Securities and Futures Commission said it has granted licences to Accumulus GBA Technology, DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology to begin running crypto exchanges.
The crypto exchanges are where investors can buy and sell products such as Bitcoin (BTC) and Ethereum (ETH). The latest approvals bring the total number of licenced crypto exchanges in the city to seven.
Although mainland China maintains a ban on commercial activities involving cryptocurrencies, Hong Kong has sought to become a hub for accessing digital assets such as Bitcoin.
The newly licensed exchanges can now operate legally within Hong Kong. The city’s market regulator previously licensed three local crypto exchanges: OSL, HashKey and HKVAX.
The four new licensees were among nearly 30 companies that applied for an operating licence this year.
Hong Kong is trying to compete against New York for investor capital allocated to cryptocurrencies.
The city earlier this year approved spot exchange-traded funds (ETFs) related to Bitcoin and Ethereum.
The Asian financial hub is currently moving ahead with legislation that will regulate stablecoin issuers, stipulating that firms must be licensed by the Hong Kong Monetary Authority before operating in the city.
