Hong Kong-Based HTX Withdraws Crypto Exchange Application
Hong Kong-based cryptocurrency exchange HTX, formerly known as Huobi Global, has withdrawn its application for a license on February 23. The Securities and Futures Commission website announced the withdrawal.
HTX is a trading platform backed by China-born entrepreneur Justin Sun. However, the exchange has not disclosed the reason behind its withdrawal, and a spokesperson from HTX was unavailable for comment at the time of press.
Tough Times For HTX
HTX and its sister exchange Poloniex have both faced challenges over the years. In November, Poloniex lost $125 million from its hot wallet due to a hacker attack. The hacker stole more than 175 different tokens from the exchange.
At that time, Sun assured users that such losses were manageable and could be covered by the exchange’s revenue. He also stated that deposits at HTX and Poloniex were 100% safe despite recent hacks. Sun is the owner of both platforms.
In a conversation with CoinDesk, Sun mentioned that both platforms had recovered from the hack and had already resumed user withdrawals for most of their assets. He stated that HTX had resumed 95% of its USD worth of assets, while Poloniex had resumed around 85% in terms of the USD value of assets.
In June, Sun expressed his optimism that HTX would receive a crypto trading license in Hong Kong within the next 6 to 12 months.
Crypto.com Applies For License With SFC
In January, Singapore-based cryptocurrency exchange Crypto.com applied for a license to operate in Hong Kong. The company submitted its application to the Hong Kong Securities and Futures Commission on February 9th. Crypto.com is seeking approval to operate as a virtual asset trading platform (VATP).
Hot Take: HTX Withdraws Application, Raises Concerns
The withdrawal of HTX’s license application raises concerns about the exchange’s future and its ability to meet regulatory requirements. This move may affect HTX’s reputation and credibility in the crypto community. It also highlights the challenges faced by cryptocurrency exchanges in obtaining licenses and operating in a regulated environment.
If HTX wants to regain trust and establish itself as a reliable platform, it will need to address the reasons behind its withdrawal and take appropriate measures to ensure the security of user funds. The exchange should also be transparent about its future plans and efforts to comply with regulatory standards.
As for Crypto.com, its application for a license with the SFC shows its commitment to operating within the legal framework and meeting regulatory requirements. If approved, this license will enhance Crypto.com’s reputation and position in the Hong Kong market.
Overall, this development highlights the importance of regulation in the cryptocurrency industry and the need for exchanges to adhere to compliance standards. As a crypto enthusiast, it is essential to choose platforms that prioritize user security and comply with regulations to protect your investments.
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension.