Coinspeaker
HTX Hong Kong Affiliate Set to Close in August Following Second Crypto License Withdrawal
The Hong Kong unit of the crypto exchange HTX, formerly known as Huobi Global, is preparing to cease operations in the region. This decision follows the withdrawal of its license application for the second time. Initially, the company, operating under the name HBGL or Huobi HK, withdrew its license application to the Hong Kong Securities and Exchange Commission (SFC) in February 2024, just three days after its submission on February 20.
However, HBGL decided to resubmit the application after making adjustments to comply with local regulations as a virtual asset trading platform. According to a report by the South China Morning Post, citing the SFC list of license applicants, the company has once again retracted the updated application from the authorities.
HBGL to Exit the Hong Kong Market in August
The SFC removed HBGL from the list of license applicants on its official website on May 14, following the withdrawal of the application. Consequently, the exchange has been instructed to halt all its operations in Hong Kong in accordance with the law.
While HBGL has not disclosed the reasons behind its decision to withdraw the application, as an unregulated exchange, the company is required to leave Hong Kong within three months, as mandated by SFC regulations. This means its departure will take place by August.
Hong Kong began requiring crypto exchanges seeking to operate in the country to obtain licenses from the SFC following the introduction of its new crypto regime. The law allows the exchanges to service retail customers in the region.
Digital assets trading platforms that qualify for the license will be able to operate in Hong Kong under a special arrangement while awaiting full licensing from the SFC in June, according to the new law.
For unqualified firms, the market watchdog may decide to send a notice informing them of the situation. These companies are required by law to leave the country at the end of May 2024, or three months from the time of the notice from the SFC.
Hong Kong Crypto License Applicants and Approvals
Since the introduction of the new digital assets regime in 2023, the SFC has approved a number of applications, starting with HashKey Exchange. The company made history in August 2023 as the first to receive approval from the financial regulator to offer crypto services to retail customers in the region.
Other companies, such as OSL Digital Securities and Hash Blockchain Limited, have been awarded coveted crypto licenses to support their operations in the country.
As indicated on the SFC website, companies like BGE Limited, the Hong Kong division of HKE Holdings, OKX Hong Kong, and DFX Labs are among the list of applicants awaiting decisions from the financial watchdog.
The SFC ceased accepting applications from digital assets trading platforms on February 29, 2024.
HTX Hong Kong Affiliate Set to Close in August Following Second Crypto License Withdrawal
