Hong Kong's cryptocurrency landscape is undergoing a radical shift. In a bold move, the Securities and Futures Commission(SFC) has mandated that all cryptocurrency exchanges without an approved license should vacate the Hong Kong market, following the elapse of an earlier issued deadline.
Notably, the regulatory body's latest directive mirrors its policies to optimize cryptocurrency trading in the region and to minimize the risk involved in virtual assets investment and marketing.
Initial Order In February
An earlier notice in February had mandated all exchange platforms operating in Hong Kong to apply for a license from the SFC, specifically from February 29, or halt operations after a 3-month deadline.
The above directive resulted in over 22 exchanges seeking licenses to ensure they remain in the region's market. Interestingly, many crypto exchanges, including OKX, QuanX Lab limited, Huobi, Gate.io, and other affected trading platforms, surprisingly withdrew their license applications as the stated deadline approached.
While most exchanges failed to publicly reveal the reasons for their sudden license withdrawals, Gate.HK cited the need for a “major overhaul” of its platform for better user experience and to meet the SFC's regulatory standards as its reason.
Consequently, Gate.HK halted marketing operations, stopped acquiring new users, delisted all cryptocurrencies, and gave existing investors until August 28 to remove all their assets.
On the flip side, Gate.HK expressed optimism about its plans to recommence its business operations in Hong Kong after obtaining the requirements and achieving its overhaul goals.
List Of Approved Exchanges To Surface On June 1
Currently, only 18 trading platforms have submitted applications to obtain an operational license from the SFC. On the other hand, only two exchanges have met the regulatory agency requirements to operate freely in the country; they include HashKey and OSL Exchange.
As part of its effort to protect Hong Kong traders, the regulatory body stated that an official list containing names of compliance crypto trading platforms will roll out today. Hence, investors should confirm the list of endorsed exchanges to ensure their digital assets' security, as investing in non-compliant exchanges might pose significant investment risks.
