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22/07/24
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HKX Announces Decision to Halt Operations in Hong Kong
HKX is now one of the crypto exchanges to have withdrawn their applications to obtain a license from Hong Kong’s Securities and Futures Commission (SFC). Four days ago, the crypto exchange’s management team expressed that it has decided to stop operating in Hong Kong.
It advised existing users to withdraw their cryptocurrency assets, with a notice published on its official website stating the following:
“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).”
The firm first submitted an application to obtain a license five months ago. Unfortunately, it could not ensure compliance with the stipulated regulatory requirements, just like some other crypto platforms.
Thirteen crypto exchanges and trading firms have withdrawn their applications to obtain a license in Hong Kong as of today. The application of one of the firms was returned without revealing the reasons.
HKX stopped allowing new registrations and suspended deposit and trading services on May 29 as it prepared to shut down in Hong Kong. The firm expressed its commitment to ensure users’ safe withdrawal of their assets, as there are no immediate plans to restart services or reapply for a license.
Similarly, Gate.HK previously withdrew its license application in Hong Kong as it did not meet the requirements. Gate.HK announced its shutdown two months ago, with plans to reconstruct its platform to comply with regulatory requirements, including the establishment of anti-money laundering and counter-terrorist financing measures.
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