Crypto exchanges Gate.io, OKX retreat from Hong Kong licensing efforts

Two distinguished world exchanges’ subsidiaries — Gate.io and OKX — have withdrawn their functions for an operational license in Hong Kong within the final two days.

This resolution displays a broader pattern, as eight corporations—together with exchanges backed by Binance and HTX—have additionally deserted their licensing efforts within the city-state, in response to a discover on the Securities and Futures Fee (SFC) web site.

In the meantime, the regulator remains to be reviewing functions from a number of different crypto exchanges, together with Crypto.com, Bullish, and Matrixport. Notably, the SFC has authorized licenses for less than two exchanges within the area, OSL and HashKey.

OKX bows out

In a Might 24 discover, Hong Kong-based crypto alternate OKX HK introduced the withdrawal of its software for a Digital Asset Service Supplier (VASP) license within the area. The alternate acknowledged:

“OKX will stop to supply centralized digital asset buying and selling companies to Hong Kong residents by 31 Might 2024 (Friday) in accordance with regulatory necessities. Buyer funds stay secure and withdrawal companies won’t be affected. After 31 Might 2024, clients will solely be capable to withdraw.”

Consequently, OKX suggested its clients to chorus from making deposits after Might 31, as these deposits might not be processed mechanically. The alternate additionally set an Aug. 31 deadline for customers to withdraw their property from its platform.

Gate.HK software withdrawal

Equally, Gate.io’s Hong Kong unit introduced on Might 23 that it had withdrawn its software for a digital asset buying and selling platform license.

The agency defined that the choice was a part of a complete platform overhaul technique that may halt the registration of latest customers, deposits, and advertising and marketing actions in Hong Kong. Moreover, the platform intends to delist all main tokens, together with Bitcoin, Polkadot, Ethereum, and others.

The platform stated it’ll stop all buying and selling companies by Might 28 and suggested customers to withdraw their property earlier than Aug. 28.

Launched in 2023, Gate.HK submitted its license software to the SFC in February in compliance with new laws mandating that exchanges serving Hong Kong clients should get hold of an operational license within the area.

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