Gate.io’s Hong Kong Entity Winds Down Operations And Withdraws Crypto Trading License Application
Gate.io’s Hong Kong entity, Gate.HK, is in the process of winding down its operations and has withdrawn its application for a crypto trading platform license in the region. In a recent statement, Gate.HK announced a platform overhaul and urged users to withdraw their assets by August 28. The platform will no longer accept new users or deposits and plans to delist all cryptocurrencies by May 28. Gate.HK mentioned that it will undergo a major platform overhaul and potentially develop new services and products in the near future, leaving the possibility open for the resumption of regional operations at a later point.
Unlicensed Exchanges Facing Exit from Hong Kong after May 31
- Starting from June 1, Hong Kong’s Securities and Futures Commission (SFC) will only allow licensed exchanges to service customers in the region.
- The SFC, after closing the application portal in February, has set a strict deadline of May 31 for non-compliant exchanges to shut down.
- Upon the closure of the deadline, the SFC will release a public register on June 1 revealing which platforms have obtained licenses.
Major Players Apply for Licenses, Concerns Raised by Recent Exits
- Leading digital asset platforms such as Crypto.com, OKX, HKVAX, and Bullish are actively working to fulfill Hong Kong’s new cryptocurrency licensing requirements.
- These requirements include risk profiling, insurance, asset custody measures, and limitations on the types of tokens that can be traded.
- Gate.HK had previously submitted an application for a license with the SFC in February 2024 but decided to withdraw it on May 22.
- The reasons behind Gate.HK’s withdrawal and Huobi HK’s struggle to obtain a crypto trading license for the second time have not been publicly disclosed.
Hot Take: Hong Kong Crypto Exchanges Undergo Transition Amidst Regulatory Changes
As Hong Kong’s crypto landscape evolves with new regulatory frameworks and licensing requirements, major exchanges are adapting to comply with the changing environment. The recent decision by Gate.io’s Hong Kong entity to wind down operations and withdraw its license application underscores the challenges that unlicensed exchanges face in the region. The upcoming deadline for non-compliant exchanges to shut down by May 31 signals a significant shift in the regulatory landscape, prompting both existing players and newcomers to navigate the changing regulatory waters in Hong Kong’s crypto industry.
Sources:
Gate.HK Statement,
SFC Announcement
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