Dubai-based crypto exchange Bybit has recently announced plans to expand its operations to Hong Kong. Along with this expansion, the platform aims to establish a research and development forum, as well as marketing groups that will operate in the city. Bybit’s move to Hong Kong comes amidst the current regulatory climate, with the ongoing regulatory crackdown on crypto in the United States playing a significant role in their efforts to attract more crypto entities.Hong Kong was once a hub for many well-known crypto firms, such as BitMEX, FTX (now defunct), and Crypto.com. However, the city has since seen increased competition from Singapore, along with concerns regarding China’s strict approach to crypto, leading to many entities leaving Hong Kong. Additionally, the stringent and prolonged response to Covid-19 has also contributed to a crypto entity exodus.Bybit plans to obtain a license in Hong Kong in line with the latest proposed regulations set to be implemented in June. According to Ben Zhou, the CEO and co-founder of Bybit, Hong Kong is rich in liquidity and exchange business, particularly for capital belonging to international investors. Zhou stated that he appreciates the city’s advanced capital markets for their financial literacy and many professional investors. However, some platforms consider the proposed regulations of the city to be very conservative as they will supposedly be restricted to top tokens like Bitcoin and Ether.Currently, Hong Kong is expressing its intention to regain its previous position in the crypto industry. The regulatory agencies in the US have terminated access to crypto-based services and products, and watchdogs are targeting crypto-friendly banking institutions. Celebrities who have endorsed digital assets have also faced allegations. As a result, Bybit and other crypto platforms have moved to other suitable locations to expand the crypto sector.Bybit’s expansion into Hong Kong is significant for the company’s growth as it seeks to obtain a license in line with the proposed regulations that will be implemented in June.This move is also essential for the global crypto industry as it shows the shifting landscape of crypto-friendly jurisdictions, with Hong Kong trying to position itself as a viable alternative to other major crypto hubs.