Justin Sun Comes Up With A New Licensing Regime In The Policy Of The Crypto Market
  • March 2, 2023
  • Team Hongkong Journalist
  • 0

In the interim of licensing regime policy, if a VASP license is granted, the Tron founder says Houbi will launch a new exchange, Houbi Hong Kong, to comply with regulators. As a result, Hong Kong is on the verge to become a virtual asset hub by the end of this summer. 

The founder of Tron blockchain, Justin Sun, and Houbi founder Leon Li and Du Jun are ready for the change. Houbi is a cryptocurrency exchange company founded in the year 2013. Both these companies are leading in the market and have planned on achieving the shift to a virtual asset hub.

Justin Sun has recently tweeted on Monday that Houbi would apply for VASP licensing i.e Virtual Asset Service Provider in Hong Kong under new requirements, and the operation may go live in June. If approved, the exchange would initially launch as Houbi Hong Kong.

“Eventually, since Huobi is one of the leading blockchain exchanges in the region … I definitely [have] confidence Huobi will secure the license,” he told CoinDesk TV’s “First Mover” on Wednesday.

As per CoinMarketCap data, Houbi ranks 15th in overall trading volume. It is one of the exchanges seeking a license to operate in Hong Kong’s crypto market. Seychelles-based crypto exchange OKX ranks 8th and is also filing to upgrade the VASP license in the city.

With the looming presence of China, “Beijing sees Hong Kong as one of the experiment zones for cryptocurrency,” Sun said.

The relationship of the Chinese government with crypto market giants has been perplexing. Two years ago, regulators cracked down on crypto trading and mining.

Sun stated his opinion by saying that China is looking forward to  Hong Kong as an experimental city to understand crypto regulation in the mainland. If Hong Kong succeeds, it could change the mindset of Beijing. “So that’s why they want to see Hong Kong do it first,” he said. “And then you see the result. If it has positive feedback, they might also change the policy in mainland China.”

The new crypto requirement in Hong Kong doesn’t mean crypto will be available to Hong Kong retailers, but it has at least made the securities regulator SFC (Securities and Futures Commission) extend a lifeline to crypto companies.

“That’s why I think right now [the] Hong Kong government is taking a very transparent and flexible way to discuss crypto regulation with market participants,” Sun said. He added the Huobi exchange has been in talks with SFC regulators to discuss the future of stablecoin regulation. “I believe Asia’s capital will be a driving force for the next bull run for the crypto market,” he said.

- Published By Team Hongkong Journalist

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