Gate.HK, the Hong Kong division of the trading platform Gate.io, has announced a temporary cessation of its operation in the Chinese region. At the same time, it is withdrawing its license application from the Hong Kong Securities and Futures Commission (SFC).
The exchange made its intention public via a notice on its official website, where it informed users of the reasons behind their new decision, sensitized users on steps to take to secure their assets, and finally hinted at a potential future return.
Gate.HK Desires To Provide A Healthy Atmosphere For Its Users
It is indeed surprising that the exchange suddenly withdrew their application just days before the deadlines stipulated by the SFC that only licensed exchanges would be functional from June 1 and non-compliant ones to close on May 31, adding that it would publish the names of compliant firms via a public register on June 1.
Citing the reasons for its decision, Gate.HK noted that it stems from the desire to develop a trading atmosphere to improve service delivery and provide a better range of products.
“Gate.HK is committed to providing a more secure and compliant experience for our users. As part of this commitment, we will be undergoing a major overhaul of our current platform, along with potential development of new services and products in the near future,” the exchange stated in its notice to users.
While the trading platform presented the above as the potential reasons driving its intention for a transient Hong Kong market exit, there is still the possibility that it could be due to issues complying with the stringent regulatory standards laid down by the Hong Kong SFC.
Important Notice: https://t.co/TLTYonQOkC Platform Overhaul and Service Changes
— Gate.HK (@gate_hk) May 22, 2024
(1/10) We are writing to inform you about important upcoming changes to our platform and services. pic.twitter.com/QLN0I9ybvI
New Directives For Customers To Avoid Losing Their Valuables
Gate.HK noted that following the SFC's May 31 deadline and the withdrawal of its license application, it will no longer accept new user registration and asset deposition.
In addition, the trading platform stated that token delisting and trading cessation will take effect from May 28, 2024, at 4:00 PM (Hong Kong time). Interestingly, no token will be spared, including top crypto assets like Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Solana (SOL), etc.
Asset withdrawals will be allowed to run on the exchange until August 28, 2024, while cessation of the trading platform marketing services will take effect almost immediately.
Gate.HK Hints At A Potential Future Market Return
Concluding its notice to users, Gate.HK hinted at the possibility of a potential Hong Kong market re-entrance after it must have satisfied the regulatory requirements.
“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 exchange remarked.
OKX Announces Withdrawal Of Its VASP License Application
While Gate.HK users are rallying around to adhere to the new directives issued by the trading platform - OKX.HK counterparts would follow suit as the exchange recently issued similar instructions to its customers.
The notice on the trading platform’s official website stated, "OKX will cease to provide centralized virtual asset trading services to Hong Kong residents by May 31, 2024 (Friday) in accordance with regulatory requirements. Customer funds remain safe, and withdrawal services will not be affected. After May 31, 2024, customers will only be able to withdraw. OKX Web3 (self-hosted wallet) services are unaffected and will remain available to Hong Kong users."
BREAKING: OKX Withdraws VASP License Application in Hong Kong
— Kyle Chassé (@kyle_chasse) May 24, 2024
OKX, the second largest offshore exchange after Binance, has announced the withdrawal of OKX HK's Virtual Asset Service Provider (VASP) license application. As a result, OKX will cease providing services to Hong Kong…
OKX.HK Directives To Customers
Like Gate.HK, OKX.HK has directed customers to refrain from depositing on the exchange after May 31, 2024. In addition, open orders that have not been closed will lose credibility on the same date.
Users have until August 31, 2024, to withdraw all their assets from the exchange or risk forfeiting them to the OKX.HK as unclaimed properties.