Bitcoin has surged more than 50% since Donald Trump’s pro-crypto victory in the U.S. presidential election on Nov. 5, reaching a record high of over $107,000 on Tuesday. Meanwhile, Hong Kong’s Securities and Futures Commission (SFC) has approved licenses for four new cryptocurrency exchanges.
The SFC granted licenses to Accumulus GBA Technology, DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI), bringing the total number of licensed virtual asset trading platforms in Hong Kong to seven. The approval process was part of the regulator’s “swift licensing process,” reflecting Hong Kong’s efforts to position itself as a global hub for digital asset trading.
Bitcoin hit its all-time high on Tuesday, Dec. 12, 2024. The SFC announced the new crypto exchange approvals on Wednesday, Dec. 13.
The developments highlight Hong Kong’s strategy to promote itself as a hub for cryptocurrency and digital asset trading, competing with global financial centers like Singapore and Dubai.
Hong Kong has intensified its efforts to attract crypto businesses as part of its broader strategy to maintain its status as a leading financial center. In April, the city launched Asia’s first spot Bitcoin and Ether exchange-traded funds (ETFs), following the U.S. introduction of similar products earlier in the year. Analysts suggest that an increase in licensed trading platforms could reduce ETF management fees, making crypto ETFs more appealing to investors.
The approval of additional crypto exchanges aligns with Hong Kong’s vision of long-term commitment to digital assets. According to Nick Ruck, director at LVRG Research, the move demonstrates Hong Kong’s determination to compete in the international race to become a global crypto hub. The city’s proactive regulatory measures, including the swift licensing process, have attracted attention from companies seeking favorable jurisdictions for digital asset trading.
As Bitcoin continues its bullish trend under Trump’s pro-crypto policies, Hong Kong’s regulatory advances highlight the growing competition among global financial centers to lead the crypto economy.
