Hong Kong is no longer popular, and mainstream exchanges are leaving Hong Kong!

OKX will withdraw from the Hong Kong market in one day.

I personally think it is normal for OKX to make this decision. If you don’t get a Hong Kong license, you will at most withdraw. Hong Kong users, if they get a Hong Kong license, even mainland users will have to withdraw.

Mainstream transactions will leave Hong Kong in batches

In addition to OKX’s official announcement a few days ago, several exchanges have actually withdrawn their applications:

We are familiar with not only OKX but also Gate/Huobi.

According to the regulations of the Hong Kong Securities and Futures Commission:

If a virtual asset trading platform operating in Hong Kong does not submit a license application to the Securities and Futures Commission on or before February 29, 2024, it will have to submit a license application to the Securities and Futures Commission in 2024. End its operations in Hong Kong on or before May 31, 2019.

This means that among the following top ten exchanges in terms of global trading volume, except Bybit, they will all bid farewell to Hong Kong:

You must know that all crypto Emerging projects in the industry, especially project tokens screened by professional institutions, are all issued on these exchanges.

We can’t expect the entire crypto industry to build the twenty-odd old coins approved by the China Securities Regulatory Commission, right?

If Hong Kong’s current encryption policy is strictly implemented, Hong Kong may be the most anti-encryption place in the world besides mainland China.

It’s hard to say that licensed exchanges are successful

According to information from the Hong Kong Securities and Futures Commission, there are currently only two companies that have obtained VASP licenses: Hashkey and OSL

Hashkey can be considered this As one of the top compliance agencies in Hong Kong, its exchange business is now a dual-flagship model. HaskeyExchange is responsible for local business in Hong Kong, and HashkeyGlobal is responsible for global business.

Let’s look at Hashkey Exchange first:

Yesterday’s transaction volume was only over 13 million US dollars, and only 20 currencies were listed.

I think Hashkey is really pitiful. They have to work hard to do so many things and still have to comply with regulations. Many people are not qualified enough. As it stands, there are only 20 coins available for trading.

Historical trading has always been so bleak, and it can only be strong when the volume is brushed:

Maybe many people are interested in this 13 million US dollars There is no idea of ​​the transaction volume. Yesterday’s transaction volume of Cobase, a compliance exchange of the United States, was 2.6 billion US dollars, which is 200 times that of Hashkey Exchanged.

The data of Hash Global, which is promoted globally, is slightly better:

Although there are only three more currencies, the transaction volume has reached one 60 million US dollars, the transaction scale is more than ten times that of Hashkey Exchange.

Another licensed institution, OSL, actually obtained a virtual asset trading license very early:

OSL then consciously relied on the traditional leading firms Bitget. On November 14, 2023, OSL announced on its official website that it had received a strategic investment of approximately HK$710 million from BGX Group. BGX’s shareholding reached 29.97%, making it the largest shareholder of OSL (the original BC Technology Group has been renamed). Bitget finally entered the Hong Kong virtual asset market in its own compliant way.

So far, the transaction data of OSL is still unavailable. For such an exchange that does not even have transaction data, it has obtained a VASP license from Hong Kong, which can be regarded as a Hong Kong characteristic. Bar.

Many traditional institutions waiting in line

There are still 18 institutions still waiting in line to apply:

It may be that the first two licensed institutions are not doing well, and the dozen or so institutions have not yet obtained licenses.

However, it is estimated that it will be difficult to get a license. Among the applicants, except Bybit, which has some trading volume, the others are relatively far away from the center of the encryption industry.

Without long-arm jurisdiction, Hong Kong would be very embarrassed

Except for the United States, no other country in the world today has long-arm jurisdiction.

As powerful as mainland China, today with such strict encryption ban, it is still easy for Chinese people to download an overseas exchange to register for trading.

On the one hand, Hong Kong is a more internationalized place. It is easier for Hong Kong people to go overseas. It is difficult to require all exchanges to pay attention to the needs of the Hong Kong government. You are an offshore (former financial) center. There is no jurisdiction outside Hong Kong.

On the other hand, for projects that represent the forefront of encryption, the first choice for token issuance is still the large exchanges we are familiar with, such as Binance/OKX, etc.

What should crypto investors or project developers do if they stay in Hong Kong? Can you only go to the compliance office? Can it only be traded on compliance exchanges?

These will only make the encryption industry farther and farther away from Hong Kong.

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