A recent Bloomberg report states that 24 companies have submitted applications for licenses to run cryptocurrency exchanges in Hong Kong, indicating the city’s efforts to become a regulated center for the crypto industry. Well-known companies like Bybit, OKX, and Crypto are among the applicants. Some applicants include Bitstamp and Huobi, but notable absences are Binance, Coinbase, and Kraken. Nevertheless, the city’s regulations for virtual assets, which focus on safeguarding investors, may pose difficulties due to compliance expenses for certain businesses. Binance and Coinbase have opted out of applying for a cryptocurrency license in Hong Kong. According to the report, the pool of candidates includes recognizable figures in the digital asset industry like Gate. io, HTX, and Bullish have shown significant levels of trading activity. However, the fact that big platforms such as Binance, Coinbase, and Kraken are not included in the list of applicants makes people wonder about their strategic choices concerning Hong Kong. The group of applicants can be seen as a measure of the industry’s feelings, showing how much trust they have in Hong Kong’s regulatory system. Angela Ang, a senior policy advisor at TRM Labs, a blockchain intelligence firm, views the involvement of established players as a good indicator. Additionally, Ethereum has released its scaling power with $2.3 billion unlocked as Blast goes live. Hong Kong has significantly fewer applicants for exchange licenses compared to Singapore, where 70 companies have applied by the end of 2021, three times more than in Hong Kong. The success of Hong Kong will be determined by the level of investments made by these companies in the local market.