and the distribution of digital products.
Crypto Exchange HKX Exits Hong Kong Market
- The Hong Kong SFC has received license applications from increasing exchanges, including the crypto exchange HKX.
- In Hong Kong, 13 crypto exchanges or trading platforms had withdrawn their license applications as of July 22.
The Hong Kong Securities and Futures Commission (SFC) has received license applications from increasing exchanges, including the crypto exchange HKX.
The management team of HKX announced on July 18 that it was closing the crypto exchange in Hong Kong and advised current users to remove their crypto holdings. According to the announcement posted on the official website:
“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 first requested a Hong Kong license in February. Like many others, however, the exchange did not meet the regulating standards in Hong Kong.
In Hong Kong, 13 crypto exchanges or trading platforms had withdrawn their license applications as of July 22. One application was returned for unknown reasons.
HKX Exit from Hong Kong Market Notice
On May 29, HKX stopped accepting new users and terminated trading and deposit services before its winddown. Assisting its users with safely removing all assets from the site, HKX promised that it has no immediate plans to resume operations or reapply for a license.
The crypto exchange Gate[.]HK, situated in Hong Kong, had earlier withdrawn its application for a license due to non-compliance with local licensing regulations.
Nonetheless, the exchange disclosed its intentions to rebuild its platform to abide by Hong Kong’s regulatory standards while it announced its closure in May. Among these demands are the implementation of counterterrorism financing and anti-money laundering procedures. The business stated:
“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.”
Recently, the Hong Kong SFC has raised concerns about seven crypto trading platforms that do not comply with license requirements. The SFC updated its alert list with Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. These exchanges reportedly misled investors into thinking they were registered with the SFC.