Cryptocurrency exchange HKX has joined the increasing number of exchanges that have withdrawn their license applications from the Hong Kong Securities and Futures Commission (SFC).
On July 18, the HKX management team announced the closure of their Hong Kong-based crypto exchange, advising users to withdraw their crypto assets. The official website notice stated:
“After careful consideration, our management team has 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).”
Struggling to meet Hong Kong regulations, HKX initially applied for a license in February but failed to comply with the regulatory requirements.
As of July 22, 13 cryptocurrency exchanges or trading platforms in Hong Kong have withdrawn their license applications, with one application being returned for undisclosed reasons.
To prepare for its closure, HKX halted new user registrations and suspended trading and deposit services on May 29. Without plans to restart services or reapply for a license, HKX is focusing on helping users safely withdraw all assets from the platform.
Previously, Hong Kong-based cryptocurrency exchange Gate.HK also withdrew its license application after failing to meet local licensing requirements. Despite announcing its shutdown in May, Gate.HK revealed plans to overhaul its platform to comply with Hong Kong’s regulatory standards, including Anti-Money Laundering and Counter-Terrorist Financing measures. The company stated:
“Gate.HK is actively working on this 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.”
Currently, Gate.HK only allows fund withdrawals for its customers.
Source: cointelegraph.com
