Justin Sun, the founder of the Tron blockchain and Huobi crypto exchange, has expressed confidence in the approval of an application for a virtual asset service provider (VASP) license under new Hong Kong requirements that come into effect this June. If approved, Huobi would launch its subsidiary Huobi Hong Kong to become a prominent part of the city’s virtual asset hub. Sun said on Wednesday that Huobi, which is currently ranked 15th in overall trading volume according to CoinMarketCap data, was well-placed to gain the license in Hong Kong’s crypto market.
Also looking to become licensed is Seychelles-based OKX, which is currently ranked 8th in overall trading volume. With these two exchanges leading the charge, Hong Kong is on track to become a major hub for virtual asset trading.
Beijing eyes Hong Kong as a crypto experiment zone
Beijing appears to view Hong Kong as a potential testing ground for cryptocurrency regulation. According to Sun, the Chinese government’s attitude towards crypto has been turbulent—two years ago they cracked down on trading and mining activities. However, they are now looking at seeing if crypto can be regulated successfully in Hong Kong, which could lead to changes in their policy on the mainland.
The new regulations do not guarantee that retail traders in Hong Kong will be able to access crypto, but the Securities and Futures Commission (SFC) has so far provided a lifeline to cryptocurrency companies. Sun believes that the Hong Kong Government is taking a transparent and flexible approach when discussing crypto regulation with market participants and that the Huobi exchange is currently in talks with SFC regulators to discuss the future of stablecoin regulation. He is hopeful that Asia’s capital will be a driving force for the next crypto market bull run.
