HKX Withdraws Licensing Application in Hong Kong, Announces Closure
- Existing customers were advised to withdraw their crypto assets by the team.
- It was in February that HKX first sought a license to operate in Hong Kong.
The number of crypto exchanges that have withdrawn their licensing applications from the Hong Kong Securities and Futures Commission ( SFC ) is increasing, and HKX is the latest addition to that list. Existing customers were advised to withdraw their crypto assets by the HKX management team on July 18, who announced the intention of winding down the Hong Kong-based crypto exchange.
According to the announcement on the 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).”
Moreover, it was in February that HKX first sought a license to operate in Hong Kong. Unfortunately, the exchange was only one of several that did not follow Hong Kong’s regulations.
No Intentions of Relaunch Anytime Soon
One cryptocurrency exchange had its application returned for reasons that were not revealed. While thirteen other exchanges or trading platforms withdrew their applications for licenses in Hong Kong as of July 22.
On May 29, HKX discontinued trading and deposit services and stopped new user registrations in preparation for its closure. Helping consumers securely remove all assets from the platform is HKX’s first priority, since the company has no intentions to relaunch services or reapply for a license anytime soon.
Furthermore, after failing to satisfy local licensing requirements, Gate.HK withdrew its license application. But the exchange said it will rebuild its platform to meet Hong Kong’s regulatory standards when it announced its closure in May. Establishing anti-money-laundering and counter-terrorism financing procedures is one of these needs.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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