Hong Kong cryptocurrency exchanges have withdrawn their license applications, and the new regulations are strict and unable to provide services to mainland investors.
Major cryptocurrency exchanges such as OOY, Zhima, KuCoin, Binance and Huobi have recently withdrawn their license applications in Hong Kong.
These companies originally showed great interest in the new virtual asset regulatory system that Hong Kong began to implement in June last year, but they had to choose to withdraw under the strict requirements of the Securities and Futures Commission and the restriction of not being able to provide services to mainland customers.
The strict requirements of the Securities and Futures Commission are one of the reasons for these companies to withdraw, and the inability to provide services to mainland customers may be another major reason.
The Hong Kong Securities and Futures Commission requires exchange operators to be "deemed to be licensed" before June 1 to continue operating in Hong Kong, and stated that virtual asset trading platforms must comply with all applicable laws and regulations, including preventing mainland residents from accessing any of their virtual asset-related services.
This regulation directly weakened the enthusiasm of companies to do business in Hong Kong. For many exchanges that have moved overseas, it is still very important to try to find workarounds to provide services to cryptocurrency investors.
The withdrawal of Hong Kong cryptocurrency exchanges reflects the complexity and uncertainty of the global cryptocurrency market. Let's talk in the comments section, what do you think the future direction of the cryptocurrency market will be