- The exchange has already applied for the status of a virtual asset service provider
- Sun stated that OKX, Gate.io, Bitget and ByBit may also be licensed.
Justin Sun, CEO of Huobi cryptocurrency exchange and founder of Tron, announcedthat Huobi may be licensed to trade cryptocurrencies in Hong Kong later this year.
The company applied last week to become a Virtual Asset Service Provider (VASP), Sun said. Within an 18-month period, the regulator must review the application and approve or reject it. However, Justin believes a decision could be made within the next six to twelve months.
“Over the next 18 months, regulatory details will be determined, including requirements for customer withdrawals and anti-money laundering. During this grace period, Huobi Hong Kong will be able to operate in Hong Kong, receive customers, use banking services, and serve its customers.” Huobi CEO said.
Although there are no reports of other Asian cryptocurrency exchanges applying for similar licenses, Sun believes that about five to six other players, such as OKX, Gate.io, Bitget and ByBit, could also make such a move.
When asked about possible competition with Coinbase and Kraken in Canada, Sun replied that Huobi does not intend to operate in this country due to strict regulatory requirements.