• CoinEx announced on May 29 that it will open a new cryptocurrency exchange for Hong Kong users that will operate under the name “BitHK.”
• The service will be available in both English and traditional Chinese, and it aims to offer “safe & compliant trading.”
• CoinEx said it will apply to become a Virtual Asset Service Provider (VASP) under Hong Kong’s upcoming Guidelines for Virtual Asset Trading Platform Operators.
CoinEx Establishes BitHK Exchange
CoinEx announced on May 29 that it is establishing a new cryptocurrency exchange for Hong Kong users called „BitHK.“ The service aims to offer „safe & compliant trading“ and will be available in both English and traditional Chinese.
Applying to Become VASP
CoinEx also said it will apply to become a Virtual Asset Service Provider (VASP) under Hong Kong’s upcoming Guidelines for Virtual Asset Trading Platform Operators. The company said it would submit its application to the Securities & Futures Commission (SFC) of Hong Kong prior to the guidelines becoming effective on June 1.
Other Exchanges Applying
Several other cryptocurrency exchanges such as Huobi, BitMEX, and OKX have also indicated their intention of applying under the same guidelines in order to operate in Hong Kong.
China’s Crypto Ban
Apart from the regulations set forth by Hong Kong, China maintains a general ban on cryptocurrency transactions which has been in place since October 2021. This prevents most crypto-related activities from taking place within mainland China, but traders can still use offshore platforms like BitHK if they are based out of Hong Kong.
With its latest move, CoinEx is taking advantage of the opportunities presented by more lenient regulations in certain regions while avoiding potential pitfalls associated with stricter jurisdictions like mainland China . These sorts of regulatory arbitrage strategies provide businesses with an opportunity to expand their services while minimizing compliance risks.