<p>Singapore-headquartered cryptocurrency exchange platform Crypto.com is making a move to further its global reach through an application for a virtual asset trading platform (VATP) license with the Hong Kong Securities and Futures Commission (SFC).</p><h2 id="header-0">Application via Fortis DAX HK Limited</h2><p>A number of months ago, the SFC established a list of both licensed platforms and license applicants. Crypto.com is the latest entity to <a href="https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Lists-of-virtual-asset-trading-platforms" rel="noopener noreferrer nofollow">appear</a> on that list through a locally incorporated entity, Fortis DAX HK Limited.</p><p>The application was made on Feb. 9, 2024. In this pursuit of regulatory approval in Hong Kong, Crypto.com now joins 16 other exchanges, including notable players like Bybit, Bullish, OKX and VAEX.</p><h2 id="header-1">Regulatory ultimatum</h2><p>The urgency to obtain a VATP license has become more immediate, given the <a href="https://coinnesslive.page.link/uYvLEsgNKLUMQwTUA" rel="noopener noreferrer nofollow">regulatory ultimatum</a> issued by the SFC recently. A stern warning from the Hong Kong regulator has been issued, mandating that exchanges must apply for the said license by Feb. 29, 2024, with a looming shutdown deadline of May 31, 2024, for those that fail to comply.</p><p>Currently, only two platforms, OSL and HashKey Exchange, hold the coveted licenses, underscoring the rigorous process and the importance of compliance in operating within the Hong Kong market.</p><p>Despite recent approvals of spot bitcoin exchange-traded funds (ETFs) in the United States and the <a href="https://coinnesslive.page.link/ed2SMgwod277cPf67" rel="noopener noreferrer nofollow">acceptance</a> of applications for similar products in Hong Kong, regulators are once again asserting their authority in the crypto space, demanding stringent compliance measures to safeguard investors and combat financial crimes.</p><p>Julia Leung, the chief executive officer of the SFC, emphasized the importance of regulatory oversight in today’s landscape, highlighting the need to protect investors and hold wrongdoers accountable.</p><p>In light of these developments, the SFC has issued a cautionary <a href="https://coinnesslive.page.link/mFsi3VptvUU5ptQb7" rel="noopener noreferrer nofollow">advisory</a> to investors, urging them to verify the regulatory status of the platforms they engage with. While exchanges can continue operating during the application process, investors are encouraged to take proactive measures, such as closing accounts with unlicensed platforms or transferring their assets to SFC-licensed exchanges before the looming deadline.</p><h2 id="header-2">Licensing and partnerships</h2><p>Despite the regulatory pressures, Crypto.com appears to be navigating the challenges adeptly, leveraging its strategic partnerships and growth initiatives to reinforce its position in the market. In a recent <a href="https://coinnesslive.page.link/DtTquYhGLPNU1D9c9" rel="noopener noreferrer nofollow">interview</a>, Eric Anziani, the COO of Crypto.com, highlighted the success of the company’s collaborations with sports giants like F1 and the UFC, as well as a stadium naming rights deal in Los Angeles that has led to the Crypto.com Arena. These partnerships not only enhance brand visibility but also serve as avenues for attracting new users to the platform.</p><p>With an approaching user base of 100 million, Crypto.com continues to expand its offerings, recently introducing Crypto.com Prime, an exclusive program tailored for high-net-worth individuals requiring a $1 million deposit. Anziani emphasized the importance of compliance, user convenience and competitive fees, while also acknowledging the diverse trading preferences among users.</p><p>This license application is the most recent example of Crypto.com’s efforts to expand compliantly. Over the course of the past 12 months, the company has secured trading licenses in <a href="https://coinnesslive.page.link/7hsd8zkD69Dq1JH99" rel="noopener noreferrer nofollow">Spain</a>, <a href="https://coinnesslive.page.link/uJfNJriNco9LBkSk7" rel="noopener noreferrer nofollow">the UK</a>, <a href="https://coinnesslive.page.link/Wf8MVTUFKMPK1he8A" rel="noopener noreferrer nofollow">Dubai</a> and <a href="https://coinnesslive.page.link/sDsZXH91M7B8NEVE8" rel="noopener noreferrer nofollow">Singapore</a>.</p>

Crypto.com moves to further global reach with Hong Kong license application

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