Is it being done under the influence of China? It was revealed why Binance took a step back!

Hong Kong's strict cryptocurrency rules have been at the center of criticism.

The licensing system offered by Hong Kong's Virtual Asset Trading Platform (VATP) came into force on June 1, 2023.

According to this system, platforms operating in Hong Kong began to have to obtain a license until June 1, 2024. However, many major exchanges such as Binance and OKX withdrew their license applications and ended their operations in Hong Kong as of May 31.

So far, only OSL and HashKey exchanges have managed to obtain a license in Hong Kong.

The reason for these withdrawals was the Hong Kong Securities and Futures Commission's (SFC) requirement not to have users in mainland China. This shook market confidence and led to criticism that the regulations created confusion in the industry.

However, the fact that cryptocurrencies are banned in China and the recognition of Hong Kong as an autonomous region of China brought to mind that all these pressures may be China-centered.

The new licensing system in Hong Kong has introduced strict regulations for virtual asset trading platforms. Platforms must comply with high standards in areas such as asset protection, prevention of conflicts of interest, cybersecurity, accounting, auditing, risk management and prevention of money laundering and terrorist financing.