All cryptocurrency exchanges that have not submitted an application for an operational license with the Securities and Futures Commission (SFC) of Hong Kong are obligated by law to cease their operations in the region immediately.
In order to protect investors from potential risks, regulators in Hong Kong have issued a clear ultimatum to cryptocurrency exchanges: either apply for a license by February 29 or shut down within three months.
During this time, more than 22 cryptocurrency exchanges applied for licenses to continue operating in the region. However, many of these exchanges ultimately chose to withdraw their applications just before the deadline.
In May alone, six cryptocurrency exchanges, including prominent global players like OKX and Huobi HK, decided to withdraw from the Hong Kong market.
While most exchanges did not provide an explanation for this unexpected development, Hong Kong-based Gate.HK mentioned the need for a “major overhaul” of its trading platform in order to comply with the regulatory requirements of Hong Kong.
Following the withdrawal of their license, Gate.HK has stopped user acquisition and marketing. Existing users have until August 28 to withdraw their funds.
The Gate.HK trading platform will no longer be operational from May 28, and previously tradable tokens such as Bitcoin (BTC), Ether (ETH), Solana (SOL), and Polygon (MATIC) will be permanently delisted.
As of May 31, a total of 18 cryptocurrency exchanges have applied for an operational license in Hong Kong. The SFC has stated that the list of approved exchanges will be announced by June 1. Currently, the only approved cryptocurrency exchanges in Hong Kong are HashKey and OSL Exchange.
It is important to note that not all cryptocurrency exchanges may be granted a license and, as a result, may be required to shut down their operations in Hong Kong.
The SFC advises investors to refer to the official list of approved exchanges in order to minimize the risks associated with trading cryptocurrencies.
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