The SFC’s dedication to creating a safe and open environment for virtual asset trading is demonstrated by this regulatory crackdown.
It is legally mandatory for any cryptocurrency exchange operating in the region to shut down right away if they haven’t applied for an operational licence with the Securities and Futures Commission (SFC) of Hong Kong. Hong Kong authorities gave cryptocurrency exchanges a strict deadline to apply for a licence by February 29 or shut down their operations within three months in an effort to reduce risks for investors.
Over 22 bitcoin exchanges submitted licence applications during this time in order to continue operating in the area. But in the end, a lot of these exchanges chose to withdraw their applications right before the deadline.
Six cryptocurrency exchanges, including major international firms like OKX and Huobi HK, left the Hong Kong market in May alone. While the majority of exchanges gave no explanation for the unexpected turn of events, Gate.HK, situated in Hong Kong, stated that in order to comply with Hong Kong’s regulatory standards, it had to undergo a “major overhaul” of its trading platform.
After the licence was revoked, Gate.HK stopped marketing to new users. Current users can withdraw their money till August 28. Beginning on May 28, the Gate.HK trading site will be unavailable for use. All formerly tradable tokens, including ether, polygon, and bitcoin, will be permanently delisted.
“Gate.HK is presently working on the previously mentioned redesign. After receiving the necessary licences, we intend to eventually return to business in Hong Kong and make a contribution to the virtual asset ecosystem. Eighteen cryptocurrency exchanges had applied for a licence to operate in Hong Kong as of May 31. The SFC states that by June 1st, the list of authorised exchanges would be made public.
HashKey and OSL Exchange are the two authorised cryptocurrency exchanges in Hong Kong as of the time of publication. It is noteworthy that bitcoin exchanges might not receive a licence and might have to cease operations in Hong Kong as a result of the SFC’s ruling.The SFC advises investors to check the official list of approved exchanges to minimize risks associated with trading cryptocurrencies.