Hong Kong has taken a tough stance towards unlicensed cryptocurrency exchanges, issuing a directive for quick shutdowns. The Securities and Futures Fee (SFC) of Hong Kong has disclosed that eleven platforms, together with HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixincom, xWhale, YAX, Bullish, Crypto.com, WhaleFin, and Matrixport HK, are actually deemed-to-be-licensed candidates.
Solely Crypto.com has secured approval out of the well-known offshore exchanges, whereas others like OKX, Bybit, Gate, HTX, and Binance have withdrawn. Hong Kong’s regulators have been clear: Cryptocurrency exchanges should both apply for a license by February 29 or stop operations inside three months to reduce dangers for traders.
The strain was on, and over 22 cryptocurrency exchanges stepped up, making use of for licenses to proceed their regional operations. Nevertheless, many of those exchanges backed out because the deadline approached, opting to withdraw their purposes.
Gate.HK, based mostly in Hong Kong, did present some perception, citing the necessity for a “main overhaul” of its buying and selling platform to satisfy Hong Kong’s strict regulatory necessities.
A number of different candidates shared their challenges with famend blockchain reporter Colin Wu. They revealed that the SFC demanded license candidates promise to not develop mainland Chinese language customers anyplace on the earth. This requirement proved to be a deal-breaker for them.
The brand new licensing system for digital asset buying and selling platforms (VATP), crafted by the China Securities Regulatory Fee, took impact right now. The system’s transitional preparations allowed operators to use for a license and adjust to the brand new regulatory necessities from June 1.
This meant they may proceed offering digital asset providers in Hong Kong till the authorities made a closing resolution on their license purposes.
“A Hong Kong legislator criticized the truth that the present candidates are very small and that Hong Kong can’t retreat to the security line from the start and hopes to advertise so-called innovation with fully zero threat,” stated Colin Wu.
