Bybit: Plans to reapply for Hong Kong's virtual asset license in Q1 next year

Ben Zhou, co-founder and CEO of the second-largest cryptocurrency exchange Bybit, said the exchange withdrew its application for a Hong Kong licence and plans to reapply for a virtual asset licence in the first quarter of next year. He said the application in Hong Kong was not for the Hong Kong market but mainly to attract talent.

Ben Zhou said Bybit had obtained licences in several jurisdictions including Argentina, the Netherlands, Kazakhstan, Georgia, Lithuania, Turkey and Dubai this year, and planned to expand further next year. He said the company had 80 per cent of its assets in stablecoins, some fiat currencies and not many bitcoins, and believed its strength was stability, focusing on products.

Ben Zhou said specific regulations for assets such as stablecoins and central bank digital currencies (CBDCs) were likely to emerge as stablecoins and CBDCs gained traction. Regulatory authorities may require stablecoin issuers to meet reserve requirements and comply with transparency standards, while scrutinising more closely how stablecoins interact with traditional banking systems.

He said the regulatory direction for decentralised finance (DeFi) was uncertain, with no clear mention of the sector by the Trump administration. Moreover, the mania for meme coins in the bull market would continue, but the sharp market decline could cause most projects to burst.

Bybit registered 60 million users this year, up from 20 million last year. Daily trading volume reached US$33bn in the third quarter this year.