- HKX will cease operations in Hong Kong due to regulatory compliance issues.
- Thirteen cryptocurrency exchanges’ license applications have been withdrawn or rejected in Hong Kong.
- Another exchange, Gate.HK, plans to overhaul its platform to meet regulatory standards and resume operations after taking similar measures.
HKX cryptocurrency exchange hi5 (Hong Kong) Limited announced its decision to cease operations in Hong Kong. The decision follows challenges faced in meeting the region’s strict regulatory requirements.
The announcement was made on July 18, with HKX management recommending users to withdraw their assets promptly.
HKX Withdraws License Application
The Hong Kong Securities and Futures Commission (SFC) has added HKX to the list of cryptocurrency exchanges that have withdrawn their license applications. HKEX initially applied for the necessary licenses in February and sought to comply with provisions of the Securities and Futures Ordinance (Chapter 571) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615).
However, despite these efforts, HKEX continues to struggle to meet regulatory standards set by Hong Kong authorities. The management of HKX detailed their decision in a statement posted on their official website.
Challenges Faced by Cryptocurrency Exchanges in Hong Kong
HKX’s decision to exit the Hong Kong market is part of a wider trend. According to information on the website of the China Securities Regulatory Commission, a total of 13 cryptocurrency exchanges have withdrawn their license applications or been rejected and returned.
Increasing regulatory scrutiny and high standards of compliance requirements pose significant challenges to cryptocurrency exchanges operating in the region. Gate.HK, another Hong Kong-based cryptocurrency exchange, has faced similar challenges and announced plans to overhaul its platform to comply with regulatory standards.
Uncertain Future for Cryptocurrency Trading in Hong Kong
The wave of exits highlights the complex regulatory environment for cryptocurrency exchanges in Hong Kong. As the Hong Kong Securities and Futures Commission enforces strict compliance measures, the future of cryptocurrency trading in the region remains uncertain. Only those exchanges that can meet these strict standards are likely to continue operating in Hong Kong.
