Hong Kong orders the immediate cessation of operations for all cryptocurrency exchanges without an operational license from the Securities and Futures Commission (SFC).
Hong Kong regulators issued cryptocurrency exchanges an explicit request on February 29 to reduce investor risk: either file for a license by that date or cease operations within three months.
Over twenty-two cryptocurrency exchanges submitted license applications to maintain their regional presence during this period. Nevertheless, in the end, many of these exchanges opted to retract their applications shortly before the deadline.
A total of six cryptocurrency exchanges, including international competitors such as OKX and Huobi HK, opted to exit the Hong Kong market in May.
In contrast to most exchanges that failed to explain the unexpected development, Beijing-based Gate did so. Before complying with Hong Kong’s regulatory requirements, HK stated that its trading platform required a “significant overhaul.”
In the aftermath of the license revocation, Gate.HK discontinued all user acquisition and marketing efforts. By August 28, current users will be able to withdraw their funds.
Permanent delisting of formerly tradable tokens, including Bitcoin, Ether, Solana, and Polygon MATIC, will occur on May 28, when the Gate.HK trading platform will cease operations.
“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.”
Hong Kong has received applications from eighteen cryptocurrency exchanges for operational licenses as of May 31. The SFC anticipates announcing the list of authorized exchanges by June 1. HashKey and OSL Exchange are the sole authorized cryptocurrency exchanges in Hong Kong as of publication.
Notably, cryptocurrency exchanges that fail to obtain a license and, due to the SFC’s determination, might be obligated to cease their activities in Hong Kong are of particular significance.
To mitigate the dangers associated with trading cryptocurrencies, the SFC recommends that investors consult the official list of authorized exchanges.
