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CoinEx takes advantage of Hong Kong rules following U.S. regulatory woes CoinEx takes advantage of Hong Kong rules following U.S. regulatory woes

CoinEx takes advantage of Hong Kong rules following U.S. regulatory woes

The company is establishing a new exchange called "BitHK" for Hong Kong users.

CoinEx takes advantage of Hong Kong rules following U.S. regulatory woes

Cover art/illustration via CryptoSlate

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

CoinEx will operate in Hong Kong

CoinEx said on Twitter that BitHK will support the Hong Kong dollar (HKD) and peer-to-peer (P2P) trading. It said it aims to offer “safe & compliant trading.”

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

In a separate press release, CoinEx said that it will apply to operate as a
Virtual Asset Service Provider (VASP) under Hong Kong’s upcoming Guidelines for Virtual Asset Trading Platform Operators. The company said that it will submit its application to the Securities & Futures Commission (SFC) of Hong Kong.

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

Apart from Hong Kong’s new crypto regulations, China maintains a general ban on cryptocurrency. Those restrictions have been in place since October 2021 and prevent most crypto exchanges, miners, and services from operating in the country.

Exchange recently left the U.S.

CoinEx has recently attracted attention due to its conflict with U.S. regulators.

In February, the Office of the New York Attorney General sued the exchange for failing to register with the state. CoinEx quickly responded by withdrawing from the U.S. market entirely โ€” not just from the state of New York, as was required.

CoinEx continues to experience moderately large trading volumes. The exchange saw $35 million in trading volume prior to the New York charges on Feb. 23, but its daily volume fell to $29 million when it blocked U.S. users one day later on Feb. 24. It currently reports 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.