Matrixport Seeks Crypto Trading License in Hong Kong

Matrixport, a Singapore-based crypto platform, has applied for a virtual asset trading license in Hong Kong through its subsidiary Flying Hippo Technologies. The move comes as the deadline for crypto exchanges to comply with the new regulations in the city approaches.

Matrixport Joins the List of Applicants

According to the Securities and Futures Commission (SFC) website, Matrixport HK submitted its application on February 26th. The company is one of the 21 firms that have applied for a virtual asset trading platform (VATP) license in Hong Kong. Among them are Crypto.com, Bixin, HKVAX, Bullish, WhaleFin, and HTX (previously Huobi Global).

The SFC introduced a licensing system for crypto platforms in November 2019, aiming to bring them under its regulatory oversight. The system became effective in June 2020, and the SFC gave a grace period of 18 months for existing platforms to apply for a license or cease their operations in Hong Kong.

The deadline for submitting the application is February 29th, 2024. After that, unlicensed platforms will have to stop their services by the end of May 2024. Failure to do so could result in fines and imprisonment.

Matrixport Eyes Global Expansion

Matrixport was founded in 2019 by former Bitmain executives Jihan Wu and Yuesheng Ge. The platform offers various crypto services, such as trading, lending, custody, and derivatives. Matrixport claims to have over $10 billion in assets under management and custody, and over $5 billion in monthly trading volume.

The company is headquartered in Singapore, but has offices in Hong Kong, Switzerland, and the UK. Matrixport also plans to expand to the US and Europe this year, according to its co-founder and CEO John Ge.

Matrixport’s application for a VATP license in Hong Kong shows its ambition to tap into the growing crypto market in the city. Hong Kong is one of the major financial hubs in Asia, and has a large number of crypto investors and traders. However, the city also faces increasing competition from other jurisdictions, such as Singapore and Japan, that have more favorable crypto regulations.

Matrixport Predicted Bitcoin’s Rise to $50,000

Matrixport is not only a crypto platform, but also a crypto analyst. The company accurately predicted that Bitcoin would reach $50,000 following the approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in January 2024.

At the time of writing, Bitcoin is trading at around $57,000, up more than 10% since the start of the year. Matrixport believes that Bitcoin has more room to grow, as more institutional investors and mainstream adoption drive the demand for the leading cryptocurrency.

Matrixport also offers its own token, called MTP, which is used for governance, rewards, and discounts on the platform. The token has a total supply of 1 billion, and is currently trading at $0.12, according to CoinMarketCap.