Two prominent subsidiaries of global exchanges – Gate.io and OKX – have withdrawn their applications for an operating license in Hong Kong in the past two days.
This decision reflects a broader trend, as eight companies – including exchanges backed by Binance and HTX – have also abandoned their licensing efforts in the city-state, according to a notice from the Securities and Futures Commission (SFC). website.
Meanwhile, the regulator is still reviewing applications from several other crypto exchanges, including Crypto.com, Bullish and Matrixport. Notably, the SFC has approved licenses for only two exchanges in the region, OSL and HashKey.
OKX bows
In a post dated May 24, Hong Kong-based crypto exchange OKX HK announced the withdrawal of its application for a Virtual Asset Service Provider (VASP) license in the region. The exchange declared:
“OKX will stop providing centralized virtual asset trading services to Hong Kong residents by May 31, 2024 (Friday), in accordance with regulatory requirements. Customers’ funds remain safe and withdrawal services are unaffected. After May 31, 2024, customers can only pick up.”
Therefore, OKX advised its customers not to make any deposits after May 31, as these deposits may not be processed automatically. The exchange also set an August 31 deadline for users to withdraw their assets from the platform.
Gate.HK application withdrawal
The same goes for Gate.io’s Hong Kong unit announced on May 23 that it had withdrawn its application for a virtual asset trading platform license.
The company explained that the decision was part of a comprehensive platform overhaul strategy that would halt new user registration, deposits and marketing activities in Hong Kong. Additionally, the platform plans to delist all major tokens including Bitcoin, Polkadot, Ethereum, and others.
The platform said it will suspend all trading services by May 28 and advised users to withdraw their assets by August 28.
Launched in 2023, Gate.HK submitted its license application to the SFC in February in accordance with new regulations requiring exchanges serving Hong Kong clients to obtain an operating license in the region.