All crypto exchanges that failed to apply for operational licenses with the Securities and Futures Commission of Hong Kong must stop operations immediately.
Legally, all cryptocurrency exchanges in the region must terminate operations immediately if they have yet to apply for an operational license from the Securities and Futures Commission (SFC) of Hong Kong.
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.
Although most exchanges refrained from explaining the unexpected development, Gate, headquartered in Hong Kong, did. A “significant overhaul” of HK’s trading platform was necessary to meet Hong Kong’s regulatory requirements.
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.
They were commencing on May 28, the Gate.HK trading platform will be rendered inoperable. All previously tradable tokens, including Bitcoin, will be irrevocably delisted.
“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 the list of authorized exchanges will be disclosed on June 1.
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.
Investors are encouraged by the SFC to verify the official roster of authorized exchanges to mitigate the potential hazards linked to cryptocurrency trading.
