Matrixport files for Hong Kong licence days before February deadline

 Matrixport and 18 other companies have submitted applications to operate in Hong Kong as the city’s watchdogs crack down on crypto businesses.   

Matrixport has filed a last-minute application to be allowed to continue operating in Hong Kong as the city’s watchdogs crackdown on crypto businesses.

The crypto investment platform filed its application under the name Flying Hippo Technologies Limited on February 26, joining a growing list of businesses seeking licensure ahead of the February 29 deadline.

The city’s security regulator has warned that any firm failing to submit a virtual asset trading platform licence application before the deadline must close shop before May 31.

The push is part of the agency’s efforts to “keep investors out of harm’s way,” as the Securities and Futures Commission’s Chief Executive Officer Julia Leung said in a recent statement.

Matrixport has operated in Hong Kong since 2019.

As a leading global financial hub, Hong Kong is an “important jurisdiction for Matrixport,” the firm’s chief compliance officer, Christopher Liu, told DL News.

“Our application for the VATP licence affirms our confidence in Hong Kong’s digital assets ecosystem and reflects our commitment towards meeting the expectations of evolving regulatory and compliance standards in Hong Kong,” Liu said.

A Matrixport spokesperson declined to comment on whether they believed the company had a clear shot at obtaining licensure.

Applications stack up

The Hong Kong subsidiary of the cryptocurrency exchange HTX, previously known as Huobi Global, also reapplied for a licence on Monday after withdrawing its application on February 20.

HTX did not publicly disclose its reasons for doing so.

The exchange did not immediately respond to a request for comment.

The bids follow several other applications this month vying for approval, including centralised exchange Crypto.com and Bullish, the parent company of crypto news outlet CoinDesk.

The revised licensing framework for cryptocurrency trading platforms in Hong Kong was implemented on June 1, 2023.

Over half of all the region’s outstanding applications for a VATP licence have come in within the last two months.

To date, only two entities – OSL Digital Securities and Hash Blockchain Limited, operators of the OSL and HashKey exchanges – have been approved for licensure, according to the SFC’s website.

A further 19 applicants are awaiting approval, bringing the total number to 21, SFC records show.

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.

Update, Feb 28: The first paragraph has been updated to clarify Matrixport has filed an application to “continue operating” rather than “operate” in Hong Kong.