Following its decision to cease operations in Hong Kong due to regulatory compliance concerns, HKX management recommends that users withdraw their assets.
The Hong Kong Securities and Futures Commission (SFC) has received notifications from many cryptocurrency exchanges that they have withdrawn their license applications. HKX is part of this list.
The HKX management team announced on July 18 that the Hong Kong-based crypto exchange would be shut down. They advised current users to withdraw their crypto assets. The notice that was posted on the official website indicated that:
“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).”
HKX Struggle to comply with Hong Kong regulations
In February, HKX applied for a Hong Kong license. Nevertheless, the exchange, like numerous others, could not adhere to Hong Kong’s regulatory requirements.
Thirteen cryptocurrency exchanges or trading platforms withdrew their license applications in Hong Kong on July 22, with one application being returned for undisclosed reasons.
Crypto withdrawals from a defunct crypto exchange
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.
Gate is a cryptocurrency exchange headquartered in Hong Kong.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.
