- HKX to stop operations in Hong Kong attributable to regulatory compliance points.
- 13 crypto exchanges have had their license functions withdrawn or rejected in Hong Kong.
- One other change, Gate.HK, plans to overtake platform to satisfy regulatory requirements and resume operations, after an analogous transfer.
HKX cryptocurrency change, hi5 (Hong Kong) Restricted, has introduced its choice to stop operations in Hong Kong. This choice follows challenges in assembly the area’s stringent regulatory necessities.
The announcement was made on July 18, with the HKX administration advising customers to withdraw their property promptly.
HKX withdraws license utility
The Securities and Futures Fee (SFC) of Hong Kong has added HKX to its listing of cryptocurrency exchanges which have withdrawn their license functions.
HKX had initially utilized for the required licenses in February, looking for compliance with each the Securities and Futures Ordinance (Cap. 571) and the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).
Nevertheless, regardless of these efforts, HKX struggled to satisfy the regulatory requirements set by Hong Kong authorities.
In a press release revealed on their official web site, the HKX administration elaborated on their choice stating: “We want to inform you that our administration staff has, after cautious consideration, determined to withdraw our utility for the Sort 1 and Sort 7 licenses below the Securities and Futures Ordinance and the digital asset service supplier license below the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance.”
Crypto exchanges withdraw licenses functions in Hong Kong
HKX’s choice to exit the Hong Kong market is a part of a broader pattern. In keeping with the data on the SFC web site, a complete of 13 cryptocurrency exchanges had both withdrawn their license functions or had their functions refused and returned by the SFC by July 22.
The growing regulatory scrutiny and the excessive requirements required for compliance have posed vital challenges for crypto exchanges working within the area.
Gate.HK, one other Hong Kong-based cryptocurrency change, had beforehand confronted comparable challenges. OKX additionally withdrew its VASP license utility in Might.
After failing to satisfy the native licensing necessities, Gate.HK withdrew its utility however introduced plans to overtake its platform to align with regulatory requirements. The change is at present centered on permitting withdrawals for its prospects and goals to renew operations sooner or later, contributing to the digital asset ecosystem as soon as the required licenses are obtained.
In preparation for its shutdown, HKX had already halted new person registrations and suspended buying and selling and deposit providers on Might 29. The corporate emphasised its dedication to helping customers with the secure withdrawal of their property, making certain a easy transition through the winddown course of.
Nevertheless, there are not any quick plans for HKX to restart providers or reapply for a license.
This wave of exits underscores the complicated regulatory panorama in Hong Kong for cryptocurrency exchanges.
Because the HKSFC continues to implement stringent compliance measures, the way forward for cryptocurrency buying and selling within the area stays unsure, with solely these in a position to meet these rigorous requirements prone to proceed operations.