• HKX to stop operations in Hong Kong resulting from regulatory compliance points.
• 13 crypto exchanges have had their license purposes withdrawn or rejected in Hong Kong.
• One other trade, Gate.HK, plans to overtake platform to satisfy regulatory requirements and resume operations, after the same transfer.

HKX cryptocurrency trade, hi5 (Hong Kong) Restricted, has introduced its resolution to stop operations in Hong Kong. This resolution 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 belongings 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The Securities and Futures Fee (SFC) of Hong Kong has added HKX to its listing of cryptocurrency exchanges which have withdrawn their license purposes.

HKX had initially utilized for the mandatory licenses in February, searching 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 an announcement revealed on their official web site, the HKX administration elaborated on their resolution stating: “We would like to inform you that our management team has, after careful consideration, decided to withdraw our application for the Type 1 and Type 7 licenses under the Securities and Futures Ordinance and the virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.”

Crypto exchanges withdraw licenses purposes in Hong Kong

HKX’s resolution to exit the Hong Kong market is a part of a broader pattern. In line with the knowledge on the SFC web site, a complete of 13 cryptocurrency exchanges had both withdrawn their license purposes or had their purposes refused and returned by the SFC by July 22.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 trade, had beforehand confronted related challenges. OKX additionally withdrew its VASP license utility in Could.

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 trade is at the moment centered on permitting withdrawals for its clients and goals to renew operations sooner or later, contributing to the digital asset ecosystem as soon as the mandatory licenses are obtained.

In preparation for its shutdown, HKX had already halted new person registrations and suspended buying and selling and deposit providers on Could 29. The corporate emphasised its dedication to helping customers with the protected withdrawal of their belongings, making certain a clean transition in the course of the winddown course of.

Nevertheless, there are not any fast plans for HKX to restart providers or reapply for a license.

This wave of exits underscores the advanced 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.