The list of cryptocurrency platforms that want to obtain new cryptocurrency trading licenses in Hong Kong is getting longer. After Huobi decided to launch its local exchange in the region, Gate Group's owner of the Gate.io trading brand made a similar announcement.
Gate.io wants to apply for trading authorization in Hong Kong and to launch a new Gate HK platform designed to meet local regulations and growing customer demand.
Gate.io to Open Gate HK
According to Finance Magnates' report on Monday, starting from 1 June 2023, any centralized virtual asset trading platform that operates in Hong Kong or caters to Hong Kong investors will be required to acquire a license from the SFC under a newly introduced licensing framework.
In a related development, Gate Group has announced its intention to apply for local cryptocurrency authorization through its Hong Kong-based Hippo Financial Services Limited (Hippo FS). The company had already successfully obtained a Trust or Company Service Provider (TCSP) License. TCSP allows Hippo FS to provide crypto assets custodial services to a global user base.
Dr Han Lin, the Founder of Gate Group, wrote in a Twitter post that he is excited about expanding the exchange's operations in Hong Kong.
"Hong Kong is a global strategic market for Gate Group, not only because Hong Kong is the hub for many financial institutions and investors, but more importantly, the industry-leading regulatory regime of Hong Kong helps boost confidence for the whole industry and provides additional stability for investors," Lin added.
Moreover, Hippo FS has allocated resources to establish teams that will oversee local operations and guarantee the safety of its service infrastructure as well as its clients' assets. Gate Group's forthcoming launch of Gate HK represents a significant stride towards advancing blockchain and virtual asset adoption.
Watch the recent FMLS22 panel discussion on: "Crypto Hub in the Making: A Fireside Chat with MP Lisa Cameron."
Gate.io Expansion in Turkey and USA
A few months before, Gate.io's United States subsidiary, Gate US, announced it had received multiple state licenses, thus gaining permission to operate a crypto exchange in a larger part of the country.
Despite obtaining new licenses, the regulatory process is ongoing, and the local crypto exchange has yet to launch its services for US customers. According to the latest information from December, the service may not initially be available to residents of several states, including New York, Puerto Rico and Hawaii.
In the meantime, Gate.io launched a new cryptocurrency exchange , GateTR, tailored to Turkey's cryptocurrency market. It responded to the enormous interest in cryptocurrencies in the country, where eight million people are actively involved in digital assets trading.
Hong Kong May Allow Retail Crypto Trading
The rising interest in crypto trading platforms to set up local exchanges in Hong Kong are primarily due to regulatory changes and the increasing possibility of permitting retail investors in the region to trade cryptocurrencies.
Recently, SFC started a period of public consultation regarding regulating crypto trading platforms. During the consultation period, SFC specifically requests input on whether licensed platform operators should serve retail traders.
A week before the SFC announced its regulatory plans, publicly-listed electronic trading firm Interactive Brokers revealed that it was expanding its cryptocurrency activities to the Asian market, offering to trade digital assets in Hong Kong.
