CoinEx announced on May 29 that it is launching a new cryptocurrency exchange for users in Hong Kong. The new exchange will be called BitHK and will operate in compliance with Hong Kong’s Guidelines for Virtual Asset Trading Platform Operators. CoinEx has also stated that it will apply to operate as a Virtual Asset Service Provider (VASP) under these guidelines.
What is BitHK?
BitHK is a cryptocurrency exchange that will support the Hong Kong dollar (HKD) and peer-to-peer (P2P) trading. The exchange aims to offer “safe and compliant trading” and will be available in both English and traditional Chinese. BitHK will be the latest addition to the growing number of cryptocurrency exchanges in Hong Kong that are hoping to capitalize on the increasing demand for digital assets.
CoinEx has stated that it will comply with Hong Kong’s new regulations and will submit its application to the Securities & Futures Commission (SFC) of Hong Kong. The relevant regulations will become effective on June 1, and other cryptocurrency exchanges that intend to apply under the guidelines and operate in Hong Kong include Huobi, BitMEX, and OKX.
CoinEx’s Recent Troubles
CoinEx has recently faced regulatory issues in the United States. In February, the Office of the New York Attorney General sued the exchange for failing to register with the state. As a response, CoinEx withdrew from the U.S. market entirely, not just from the state of New York, as was required. CoinEx continues to experience moderately large trading volumes, with a 24-hour trading volume of $31 million as of May 28. It remains to be seen whether CoinEx’s upcoming presence in Hong Kong will fully replace any activity that it lost by abandoning U.S. users.
CoinEx’s latest move into the Hong Kong market is a significant step forward for the company. The launch of BitHK will allow CoinEx to expand its reach into Asia, where the demand for digital assets is growing rapidly. By complying with Hong Kong’s regulatory requirements, CoinEx is positioning itself as a trustworthy and reliable cryptocurrency exchange. Despite its recent troubles in the United States, CoinEx appears to be moving forward with its plans to become a leading player in the global cryptocurrency market.