Bybit Promotes Expansion Of Operations At New Crypto Hub Hong Kong

Key Points:

• Bybit said it is working to establish its core business in Hong Kong in Asia.
• It plans to establish a regional research, development, and marketing group division.
• Hong Kong previously had ambitions to become the new crypto hub, and it is receiving a lot of attention following an intense crackdown by US regulators.

Bybit, one of the largest cryptocurrency derivatives exchanges based in Dubai, said it is working on setting up its core Asian business in Hong Kong and plans to set up a division of the research, development, and marketing team in Hong Kong, reported the WSJ.

The exchange, founded in 2018, also intends to apply for a license in Hong Kong under the proposed rules that come into effect in June.

According to previous information, on March 31, Bybit was warned by the Japan Financial Services Agency for offering cryptocurrency trading without registration based on the same administrative principles as with three other crypto exchanges outside of Japan.

Currently, Hong Kong is considered a golden land for the development of cryptocurrency companies around the world. Global crypto dominance plans for Hong Kong are underway. According to the report, Hong Kong’s Securities and Futures Commission proposed a new licensing framework focusing on investor protection in February. Furthermore, a senior official stated at a press conference that the regulator wanted to avoid a recurrence of the problems that caused the collapse of FTX and other fraudulent practices.

More than 20 crypto and blockchain companies from mainland China, Europe, Canada, and Singapore have notified the government that they intend to set up shop in HK. At the same time, according to official figures, more than 80 companies have expressed an interest in cryptocurrency trading in the city.

This is further supported by the face of a central banking crisis. In the past few weeks, US regulators have cut off access to crypto products and services, targeting banks with crypto-friendly banks, filed civil lawsuits against celebrities accused of promoting digital assets, and sued exchanges, including Binance Holdings Ltd., the operator of the largest cryptocurrency exchange.

The US crypto crackdown has inadvertently boosted HK’s crypto ambitions as businesses and investors seek a friendlier regulatory environment and a gateway to developing Asia’s crypto market. As such, HK has the potential to emerge as a leading player in the global blockchain and crypto ecosystem, with implications for the broader financial and technology landscape in the coming years.

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