Huobi withdraws application for Hong Kong crypto exchange license

Huobi has revoked its license to trade under Huobi HK following the Hong Kong regulator's order on crypto exchange licenses.

The Hong Kong Securities and Futures Commission (SFC) continuously advises investors to exercise due diligence on crypto platforms through its website.

Huobi issued a Hong Kong crypto exchange license

According to the SFC website, Huobi HK withdrew the application three days after it was submitted on February 23. It applied under the local legal entity HBHL Hong Kong Limited.

Recently, two other crypto exchanges, Amber and Bitharbor, have withdrawn their licenses. However, Mex's application was returned on February 7 due to undisclosed reasons.

BeInCrypto recently reported that as of February 29th, all crypto exchanges in Hong Kong must obtain or apply for a VATP license.

Read more: 10 Best Crypto Exchanges and Apps for Beginners in 2024

The commission emphasized the importance of trading through the license exchange, urging investors to regularly check the regulatory status of platforms. The SFC said:

“Investors should check whether VATP is on the ‘List of Licensed Virtual Asset Trading Platforms' or the ‘List of Virtual Asset Trading Platform Applicants'.”

The Hong Kong SFC has stepped up its compliance efforts

However, the SFC is actively addressing various aspects of crypto exchanges to ensure comprehensive compliance.

On January 30, OSL, one of the authorized exchanges, reported that the SFC has lowered the mandated insurance coverage on digital assets to 50%.

Read more: 7 Best Crypto Exchanges in the US for Bitcoin (BTC) Trading

The SFC has expanded its scope to include over-the-counter (OTC) crypto products, with plans to subject them to the same regulations as other crypto exchanges or products.

The proposal is open to public consultation, under threat from anti-money laundering measures. Currently, OTC trading lacks the strict requirements imposed on regular crypto exchanges.