Hong Kong has stopped the license application of crypto exchanges

Hong Kong has stopped accepting license applications from crypto exchanges since February 29 and will soon require all non-compliant trading platforms to close their businesses in the country.

Hong Kong's Securities and Futures Commission (SFC) has announced that all crypto exchanges in Hong Kong that have not submitted license applications must resume trading by May 31, 2024.

Hong Kong's SFC also urged investors using virtual asset trading platforms to “prepare” and migrate to one of the players who have already obtained an operating license or submitted an application.

The SFC officially licensed two crypto trading operators in Hong Kong, OSL Digital Securities on December 15, 2020 and HashKey Exchange on November 9, 2022. The regulator has received license applications from 22 crypto trading platforms, including four exchanges that have applied under it. The SFC's previous opt-in system for crypto trading platforms.

Additionally, four other exchanges – Huobi HK, Meex, BitHarbour and Ammbr – applied for the license but later either withdrew or had their applications withdrawn. The SFC also publicly maintains a list of crypto platforms that will eventually be forced to shut down by law, with the aim of informing citizens of the associated risks.

During the shutdown, Hong Kong will limit the operational capacity of the exchange and force the closure of all trading activities in the region. The Hong Kong SFC will announce the list of crypto exchanges that will be considered licensed from June 1, 2024. However, the purchase of a license for all named names is not guaranteed.

Related: Hong Kong SFC issues warning on fake crypto exchange pretending to be MEXC

Once licensed by the Hong Kong SFC, crypto exchanges will be able to trade Bitcoin (BTC) and Ether (ETH) to retail investors. Various altcoins and stablecoins are currently being evaluated by the SFC for trading licenses.

Hong Kong-based crypto exchange BitForex has been trading in the recent past after halting withdrawals for at least three days.

The X account of the exchange has not been updated since May 2023. On the Telegram channel, BitForex users are reporting problems with their accounts ranging from being unable to log into the dashboard without displaying any assets. Several users have shared a pop-up screen that shows they are blocked from accessing the company's website. An internal investigation by Scientology revealed the same problem.

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