HK cryptocurrency exchange has withdrawn its license applications in Hong Kong and advised users to withdraw their assets following the decision.
On July 18, the HKX management team announced its intention to terminate the Hong Kong-based crypto exchange, advising current users to evacuate their crypto assets. On the official website, there was a notice that read:
“We would like to inform you that our management team has, after careful consideration, decided to withdraw our application for the Type 1 and Type 7 licenses under the Securities and Futures Ordinance (Cap. 571) and the virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).”
Challenges associated with Hong Kong regulations
In February, HKX applied for a Hong Kong license. Nevertheless, the exchange, like numerous others, needed to adhere to Hong Kong’s regulatory requirements.
Thirteen cryptocurrency exchanges or trading platforms have withdrawn their license applications in Hong Kong as of July 22, and one has had its application returned for undisclosed reasons.
On May 29, HKX suspended trading and deposit services and ceased new user registrations in anticipation of its winddown.
HKX has pledged to support its users in safely withdrawing all assets from the platform, with no immediate intentions to restart services or reapply for a license.
Based in Hong Kong, Gate is a cryptocurrency exchange.HK had previously revoked its license application due to its failure to satisfy the local licensing requirements.
Nevertheless, when it closed in May, the exchange disclosed its intention to restructure its platform to satisfy Hong Kong’s regulatory mandates.
These requirements encompass the implementation of Anti-Money Laundering and Counter-Terrorist Financing measures. According to the organization,
“Gate.HK is actively working on the aforementioned overhaul. We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”
At present, Gate.HK exclusively permits its clientele to withdraw funds.
