As an experienced financial analyst with a background in the crypto industry, I’m closely monitoring the recent developments regarding HTX (formerly Huobi Global) and its decision to exit the Hong Kong market. The repeated withdrawal of their license application from the Hong Kong Securities and Exchange Commission (SFC) is concerning, as it suggests that the company may have faced significant regulatory challenges.
HTX’s Hong Kong branch, previously known as Huobi Global, is planning to shut down its operations in the region. This move comes after the company withdrew its license application with the Securities and Exchange Commission of Hong Kong (SFC) for a second time. The initial application was submitted in February 2024 but was withdrawn only three days later.
Despite having resubmitted their application as a virtual asset trading platform to HBGL with modifications to adhere to local regulations, according to a report by the South China Morning Post, the company has since withdrawn the revised submission from the regulatory authorities.
HBGL to Exit the Hong Kong Market in August
On May 14, the Securities and Futures Commission (SFC) took HBGL off its roster of license applicants on their official website. As a result, HBGL is required to cease all business activities in Hong Kong in compliance with the applicable laws.
HBGL, which isn’t subject to regulation, hasn’t explained why it’s pulling its application, but under Hong Kong rules, unregulated exchanges have three months to leave. Consequently, their exit will occur by August.
Starting this year, Hong Kong mandates that cryptocurrency platforms aiming to provide services within its jurisdiction must secure licenses from the Securities and Futures Commission (SFC). Under the newly instituted regulatory framework, these licensed platforms are authorized to cater to retail consumers in the area.
Under the new legislation, digital asset trading platforms granted preliminary approval can commence operations in Hong Kong on a provisional basis until they receive their full license from the Securities and Futures Commission (SFC) in June.
As a researcher, I would express it this way: Unqualified firms receiving a warning from the market watchdog face mandatory departure from the country within a specific timeframe. The SFC will issue notices with a deadline of May 2024, which is three months following receipt of the notice.
Hong Kong Crypto License Applicants and Approvals
Starting in 2023, the Securities and Futures Commission (SFC) has granted approvals for several digital asset initiatives, with HashKey Exchange being the trailblazer. In August of that year, HashKey Exchange created history by becoming the first organization to gain SFC’s authorization to provide cryptocurrency services to retail clients in the region.
Some businesses, including OSL Digital Securities and Hash Blockchain Limited, have obtained prestigious cryptocurrency licenses, enabling them to carry out their activities in the nation.
According to the Securities and Futures Commission (SFC) website, BGE Limited, a subsidiary of HKE Holdings based in Hong Kong, OKX Hong Kong, and DFX Labs are some of the companies whose applications for regulatory approval are currently under review by the financial watchdog.
The SFC ceased accepting applications from digital assets trading platforms on February 29, 2024.
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2024-05-15 14:03