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All cryptocurrency exchanges in Hong Kong that have not applied for an operational license with the Securities and Futures Commission (SFC) must immediately cease operations, as per the latest regulatory mandate.
In a decisive move to protect investors, Hong Kong regulators have issued an ultimatum to cryptocurrency exchanges: apply for a license by February 29 or shut down within three months.
Over 22 cryptocurrency exchanges responded to this directive, applying for licenses to continue their operations in the region. However, many withdrew their applications just before the deadline.
In May alone, six exchanges, including major players like OKX and Huobi HK, exited the Hong Kong market. While most exchanges did not specify their reasons, Gate.HK cited the need for a “major overhaul” of its trading platform to meet Hong Kong’s regulatory standards.
Post-withdrawal, Gate.HK ceased new user acquisition and marketing efforts. Existing users have until August 28 to withdraw their funds. The platform will cease operations from May 28, delisting all tradable tokens, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and Polygon (MATIC).
Gate.HK stated, “We are actively working on the aforementioned overhaul and plan to resume our business in Hong Kong in the future after obtaining the relevant licenses.”
As of May 31, 18 cryptocurrency exchanges have applied for operational licenses in Hong Kong. The SFC will announce the list of approved exchanges by June 1. Currently, the only approved exchanges in Hong Kong are HashKey and OSL Exchange.
It’s important to note that not all applying exchanges may receive a license and may therefore be required to shut down their operations in Hong Kong. The SFC advises investors to refer to the official list of approved exchanges to mitigate risks associated with trading cryptocurrencies.
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