Regulation
Hong Kong officially eliminates all unlicensed cryptocurrency exchanges, enforcing strict regulations
Through this regulatory action, the Securities and Futures Commission (SFC) has demonstrated its commitment to promoting a safe and open environment for trading virtual assets.
Hong Kong Regulators require cryptocurrency exchanges to apply for licenses or cease operations by February 29
As per CointelegraphIt is a legal requirement that all cryptocurrency exchanges that have not yet submitted an application for an operating license to the Securities and Futures Commission (SFC) in Hong Kong immediately suspend their operations in the region.
Hong Kong Regulators have issued a clear ultimatum to cryptocurrency exchanges to reduce the dangers investors face. The ultimatum stated that exchanges must apply for a license by February 29 or cease operations within three months.
Additionally, during this time period, over twenty-two Bitcoin exchanges have submitted requests for licenses to continue operating within the region. However, a significant number of these exchanges ultimately decided to withdraw their applications as the deadline approached.
Withdrawals from Hong Kong market were made by six cryptocurrency exchanges in May alone. These exchanges included global players such as OKX and Huobi HK.
However, unlike most exchanges, Hong Kong-based Gate offered no explanation for the unexpected turn of events. HK said that to comply Hong Kongcompared to ‘s regulatory standards, it would require a “major overhaul” of its trading platform.
Gate.HK halts operations and removes tokens following license revocation, users must withdraw by August 28
Following the revocation of the license, Porta.HK suspended all marketing and user acquisition efforts. Already registered users have until August 28th to withdraw their cash.
Starting May 28th, the Gate.HK trading platform will no longer function. Additionally, during this period all previously tradable tokens, including Bitcoin, Ether, Solana and Polygon, will be permanently removed from the list.
Gate.HK is now undergoing the aforementioned revamp. We may resume our operations in Hong Kong and contribute to the virtual asset ecosystem in the future, provided you have obtained the necessary permissions.
As of May 31, 18 cryptocurrency exchanges have applied for a license to operate in Hong Kong. As specified by the SFC, the list of swaps that have obtained approval will be made public by June 1st. HashKey and OSL Exchange are the two cryptocurrency exchanges that have been granted permission to operate in Hong Kong as of this writing.
It is essential to note that cryptocurrency exchanges may not obtain a license and, as a result of the decision taken by the SFC, may be forced to cease their operations in Hong Kong because of the decision.
The Securities and Futures Commission (SFC) recommends that investors check the official list of acceptable exchanges to reduce the risks associated with cryptocurrency trading.
Photo: Microsoft Bing