Coinspeaker HKX Wind Downs Operations in Hong Kong, Withdraws Licensing Application
Digital asset trading platform HKX has joined the exchanges pulling off licensing applications from the Hong Kong Securities and Futures Commission (SFC). Asking current users to quickly withdraw their crypto holdings, the management team of the company declared their intention to stop running business in Hong Kong. The company wrote:
“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).”
In February HKX first sought a license from Hong Kong. Like many other cryptocurrency trading platforms, the exchange battled to satisfy the city-state’s regulatory criteria. With one application being returned for unknown reasons, 13 cryptocurrency exchanges or trading platforms have thus withdrawn their licensing applications in Hong Kong as of July 22.
HKX discontinued trading and deposit services in readiness for its wind-down and stopped new user registrations. With no immediate plans to resume services or apply for a license, the platform has promised to help customers safely withdraw all assets from the platform.
As reported earlier, the Hong Kong SFC issued an alert against seven crypto exchanges including Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest, for operating in the region without proper registrations and approvals.
HKX Is Not Alone
For several cryptocurrency exchanges, Hong Kong’s regulatory scene has proved difficult. Another well-known site, Gate.HK, also withdrew their license application after not fulfilling local licensing criteria. Gate.HK declared its closing in May, but it also revealed plans to rebuild its platform in line with Hong Kong’s legal requirements, including Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies.
“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,” the company stated.
It is important to note that Hong Kong seeks to bring an improved regulatory framework for digital assets and virtual asset service providers. Christopher Hui, Secretary for the SFC, stated that the regulator will bring certain revisions into the Special Administrative Region (SAR) licensing regime and as a result, cracked down heavily on crypto exchanges. The government is also considering a new licensing system for crypto-to-fiat platforms to improve confidence among investors, especially international investors.
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HKX Wind Downs Operations in Hong Kong, Withdraws Licensing Application