Hong Kong Shuts Down Unlicensed Crypto Exchanges
31 May, 2024 ● Crypto News
Cryptocurrency exchanges operating in Hong Kong without a license from the Securities and Futures Commission (SFC) have been mandated to halt their operations.
This directive forms part of Hong Kong's push to bolster investor protection by ensuring all crypto exchanges meet certain regulatory standards.
In response to this regulatory ultimatum, exchanges had until February 29 to submit their licensing applications or face a required shutdown within three months.
Over this period, 22 exchanges filed for licenses, although several, including major players like OKX and Huobi HK, opted to withdraw their applications just before the deadline, resulting in their exit from the Hong Kong market in May.
Gate.HK, one of the affected exchanges, attributed its withdrawal to the necessity for substantial revisions to its trading platform to meet the new regulatory requirements.
Following its license retraction, Gate.HK halted new user sign-ups and marketing activities and set a deadline for existing users to withdraw their funds by August 28.
The platform also announced the permanent delisting of all its tradable tokens including Bitcoin and Ether as of May 28.
Gate.HK has expressed intentions to overhaul its operations and re-enter the Hong Kong market after securing the required licenses
As of the end of May, 18 exchanges had applied for licenses, with the SFC set to announce the approved entities by June 1.
At the time of reporting, only HashKey and OSL Exchange had received approval.
The SFC continues to advise investors to consult the official list of licensed exchanges to safeguard against the risks associated with trading on unregulated platforms.
Sources:
https://cointelegraph.com/news/hong-kong-unlicensed-crypto-exchanges
