Huobi Technology has applied to become a regulated virtual asset trading platform with Hong Kong’s securities watchdog, as the city moves on to clarify and tighten rules on cryptocurrency-related businesses.

See related article: Hong Kong to propose bill to license crypto exchanges

Fast facts

• Huobi said on Thursday the Securities and Futures Commission (SFC) has lodged its Hong Kong unit’s license application for virtual asset trading.

• The crypto exchange applied for licenses specifically for securities trading and automated trading services.

• In a proposed amendment to the Anti-Money Laundering and Counter-Terrorist Financing Bill, virtual asset service providers (VASPs) would be required to obtain a license from the SFC to legally operate in Hong Kong.

• Such a licensing regime is proposed to take effect in March 2023.

• The bill was gazetted on June 24 and went through its first reading on July 6, according to the Legislative Council.

See related article: Hong Kong Exchange to trial digital assets trading in ‘Diamond’ pilot