Gate.io applies for VASP license in Hong Kong
Gate Digital Ltd (Gate HK), a subsidiary of crypto exchange Gate.io, is applying for a virtual asset service provider (VASP) license in Hong Kong following the Group’s successful acquisition of the Trust and Corporate Service Provider (TCSP) license.
The exchange has already applied with the Securities and Futures Commission (SFC) under the anti-money laundering laws to trade non-security tokens. Additionally, Gate HK wants to apply for Licenses under the Securities and Futures Ordinance for Type 1 (Securities Dealing) and Type 7 (Automated Trading Services Provision) regulated activities to facilitate security token trading.
Among other benefits, Gate.io will be able to establish relationships with traditional financial institutions like banks, which enables its customers to convert their cryptocurrency to fiat money or vice versa on the platform.
Hong Kong is one of the most progressive and open jurisdictions for cryptocurrency regulation in Asia. The government has taken a cautious but supportive approach to the development of cryptocurrency and blockchain technology while also protecting consumers.
Gate.io cited the nation’s crypto-friendly policies as Hong Kong’s government is pushing to attract digital asset businesses, which would increase retail investors’ access to top cryptocurrencies and crypto exchange-traded funds.
Under the current framework, virtual assets are classified as “securities” or “commodities” depending on their specific characteristics and are subject to the same regulatory requirements as traditional securities and commodities. This means that cryptocurrency exchanges that operate in Hong Kong are required to comply with a range of regulations relating to customer due diligence, anti-money laundering (AML), and other consumer protection measures.
Earlier in December, Gate.io’s US-based arm, Gate US, has been granted a license to offer virtual asset services in the United States.
Without revealing further details, Gate.io said it has secured regulatory approval to operate as a blockchain and digital asset infrastructure provider. The nod greenlights the exchange to launch its exchange platform and digital asset trading services to retail and institutional clients in several US states.
The news came shortly after Gate.io obtained authorisation to operate in Lithuania, which covers many business areas including crypto-asset trading, custodian service, digital asset wallet, and portfolio management.
Obtaining this Lithuanian crypto licence is a significant milestone for Gate.io and facilitates its registration in other European countries, expanding its scope of service to reach more users worldwide. It also launched operations in Malta after its technology unit received the regulators’ nod as a virtual financial assets service provider, allowing it to operate an exchange and offer custodian services in the country.
