Hong Kong will officially ban all unauthorized crypto exchanges.
All crypto exchanges that have not applied for an operating license with the Hong Kong Securities and Futures Commission (SFC) are legally required to immediately cease operations in the region.
Hong Kong regulators have issued a clear transfer request to reduce risks for investors: Either apply for a license by February 29 or cease operations within three months.
During this period, more than 22 cryptocurrency exchanges applied for a license to maintain their presence in the region. However, most of these exchanges eventually decided to withdraw their applications before the deadline.
In May alone, six cryptocurrency exchanges exited the Hong Kong market, including international players such as OKX and Huobi HK.
While most exchanges have given no reason for the dramatic change of events, Hong Kong-based Get.HK has noted that a “major overhaul” is needed before its trading platform can meet Hong Kong's regulatory requirements.
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Following the license issuance, Gate.HK has suspended access to users and transactions. Existing users have been given until August 28 to withdraw their funds.
The Gate.HK trading platform will be inactive from May 28, all previously tradable tokens such as Bitcoin (BTC), Ether (ETH), Solana (SOL) and Polygon (MATIC) will be permanently deleted.
“Gate.HK is actively working on the above mentioned update. In the future, we plan to continue our operations in Hong Kong and contribute to the virtual property ecosystem after obtaining the appropriate licenses.
As of May 31, 18 cryptocurrency exchanges have applied for operating licenses in Hong Kong. According to the SFC, the list of approved exchanges will be announced on June 1. At the time of publication, the only cryptocurrency exchanges authorized in Hong Kong are HashKey and OSL Exchange.
It should be noted that cryptocurrency exchanges may not be licensed and may be required to close their operations in Hong Kong due to the SFC's decision.
The SFC advises investors to check the official list of approved exchanges to minimize the risks associated with cryptocurrencies.
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