CoinEx leverages Hong Kong rules after U.S. regulatory woes

CoinEx announced on May 29 that it will open a new cryptocurrency exchange for Hong Kong users, which will operate under the name “BitHK.”

CoinEx will operate in Hong Kong

CoinEx tweeted that BitHK will support Hong Kong dollar (HKD) and peer-to-peer (P2P) trading. It says it aims to provide “safe and compliant transactions.”

The service will be available in both English and Traditional Chinese.

In a separate press release, CoinEx stated that it will apply as a
Virtual Asset Service Providers (VASPs) under Hong Kong’s upcoming Guidelines for Virtual Asset Trading Platform Operators. The company said it would submit an application to Hong Kong’s Securities and Futures Commission (SFC).

The relevant regulations will come into effect on June 1. Other cryptocurrency exchanges that intend to apply under the guidelines and operate in Hong Kong include Huobi, BitMEX and OKX.

In addition to Hong Kong’s new cryptocurrency regulations, China has a blanket ban on cryptocurrencies. The restrictions are in place from October 2021 and prevent most cryptocurrency exchanges, miners and services from operating in the country.

Exchange recently left the US

CoinEx has recently been in the spotlight for running afoul of U.S. regulators.

In February, the New York Attorney General’s Office sued the exchange for failing to register in the state. CoinEx responded quickly by withdrawing from the U.S. market entirely — not just New York State, as required.

Trading volumes on CoinEx continue to be moderate. Before the New York fee on Feb. 23, the exchange was trading $35 million in volume, but it dropped to $29 million a day later on Feb. 24 after blocking U.S. users. It is currently reporting a 24-hour trading volume of $31 million as of May 28.

It remains to be seen whether CoinEx’s imminent Hong Kong launch will fully replace any activity it lost by abandoning US users.

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Source of information: Compiled from CRYPTOSLATE by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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