- 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- 13 crypto exchanges have had their license functions withdrawn or rejected in Hong Kong.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 fulfill regulatory requirements and resume operations, after an identical transfer.
HKX cryptocurrency change, hi5 (Hong Kong) Restricted, has introduced its determination to stop operations in Hong Kong. This determination 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 software
The Securities and Futures Fee (SFC) of Hong Kong has added HKX to its checklist of cryptocurrency exchanges which have withdrawn their license functions.
HKX had initially utilized for the required licenses in February, in search of compliance with each the Securities and Futures Ordinance (Cap. 571) and the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).
Nonetheless, regardless of these efforts, HKX struggled to fulfill the regulatory requirements set by Hong Kong authorities.
In a press release printed on their official web site, the HKX administration elaborated on their determination stating: “We want to inform you that our administration group has, after cautious consideration, determined to withdraw our software for the Sort 1 and Sort 7 licenses beneath the Securities and Futures Ordinance and the digital asset service supplier license beneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance.”
Crypto exchanges withdraw licenses functions in Hong Kong
HKX’s determination to exit the Hong Kong market is a part of a broader pattern. In line with the data on the SFC web site, a complete of 13 cryptocurrency exchanges had both withdrawn their license functions or had their functions refused and returned by the SFC by July 22.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 related challenges. OKX additionally withdrew its VASP license software in Could.
After failing to fulfill the native licensing necessities, Gate.HK withdrew its software however introduced plans to overtake its platform to align with regulatory requirements. The change is presently 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 required licenses are obtained.
In preparation for its shutdown, HKX had already halted new person registrations and suspended buying and selling and deposit companies on Could 29. The corporate emphasised its dedication to aiding customers with the protected withdrawal of their property, guaranteeing a easy transition through the winddown course of.
Nonetheless, there aren’t any rapid plans for HKX to restart companies 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.
