Crypto exchange Bybit has applied for a license in Hong Kong to operate as a “virtual asset trading platform,” the company said today in a statement shared with The Block.

The Hong Kong Securities and Futures Commission’s website shows that Bybit submitted its license application on Wednesday through the entity Spark Fintech Limited. The financial regulator is officially reviewing applications from 14 crypto firms, including OKX, which filed its application on Nov. 16, according to the website.

“Obtaining a VATP license in Hong Kong is a significant step for Bybit,” the exchange said in the statement. “The city's strategic location and established financial infrastructure make it an ideal base for our operations and institutional clients, serving the Asia Pacific region.”

HKVAEX, a crypto platform reportedly linked to Binance, applied for the same license on Jan. 4, according to the SFC’s list of applicants.

Hong Kong beckons

Unlike its neighboring Chinese mainland’s broader crackdown on crypto trading and mining, Hong Kong rolled out the welcome mat for crypto firms last year. 

In June 2023, Hong Kong officially started its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. Hong Kong has so far granted such licenses to two platforms — namely HashKey and OSL.

Hong Kong is also preparing to pave the way for spot crypto exchange-traded funds (ETFs), with the SFC and the Hong Kong Monetary Authority, the city’s de facto central bank, announcing in December that both agencies have reviewed their existing policy. The regulators published two circulars addressing the requirements for spot crypto ETFs.

In January, Livio Weng, chief executive officer of HashKey Exchange, said that around 10 fund companies have started looking into launching potential spot crypto ETFs in the city.

The Hong Kong arm of Harvest Fund Management, a major Chinese asset manager, reportedly submitted an application for a spot bitcoin ETF last week.