HTX’s Hong Kong affiliate withdrew its license application for the second time on Tuesday, adding to uncertainty about whether the exchange can legally operate in the region.
According to the SFC website, HBGL Hong Kong (Huobi HK) was removed from the Securities and Futures Commission’s virtual asset trading platform applicant list as a withdrawal applicant.
The SFC’s license application page showed Huobi HK had been removed from the list on Tuesday. This comes after the company resubmitted its application on February 26 after withdrawing its previous application on February 23.
The SFC did not specify why the company withdrew its application. Huobi HK did not immediately respond to The Block’s request for comment.
The Hong Kong SFC stipulates that cryptocurrency trading platforms that fail to submit their license applications by February 29 must close their operations in Hong Kong by May 31 or within three months of further notice.
In contrast to the widespread crackdown on cryptocurrency trading and mining in neighboring mainland China, Hong Kong rolled out the welcome mat for cryptocurrency companies last year. In June 2023, Hong Kong officially launched a cryptocurrency licensing regime for virtual asset trading platforms, allowing licensed exchanges to provide retail trading services. Hong Kong has licensed two platforms: HashKey and OSL.
Many global exchanges have applied for these retail trading licenses. According to the SFC website, the SFC is formally reviewing applications from 20 cryptocurrency companies, including OKX, Bybit, Bullish, and Crypto.com.
HKVAEX, a cryptocurrency platform known to be linked to Binance, announced last month that it was shutting down after withdrawing its license application on March 28. The platform was officially shut down on May 1.
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