Last year, there were plans for crypto exchange HTX to introduce a new platform named Huobi Hong Kong and seek a license in the city. However, recent updates reveal that the Hong Kong-based branch of HTX, previously known as Huobi, has decided to withdraw its application for a virtual asset trading license. There was a notice posted about this development on the Securities and Futures Commission website. The specific reasons for the withdrawal have not been publicly disclosed, as per reports.
The Huobi Hong Kong withdrawal
On February 23, HBGL Hong Kong Limited, the Hong Kong division of HTX, withdrew its application for a license to operate Huobi HK. This withdrawal came just three days after the submission of the application, as reported by the Securities and Futures Commission (SFC). The SFC who is responsible for publishing a list of crypto exchange license applicants, made this information available. Despite this development, HTX did not publicly disclose the reason for the withdrawal.
The SFC also noted that, as of now, three crypto exchange operators have withdrawn their applications, and one application has been returned. This withdrawal is significant within the context of Hong Kong’s new regulatory framework for virtual assets, which became effective last year.
Under these regulations, companies engaging in the sale or marketing of cryptocurrencies to Hong Kong residents are required to apply for a license by February 29, or they must cease operations in the city by June 1 this year.
Despite the relatively low number of international crypto companies submitting applications, the Hong Kong market has been deemed highly attractive for firms with strong connections to mainland China. Many relocated their headquarters overseas following Beijing’s crackdown on the industry.
Companies that have applied
Licensing applications have been submitted by several well-known companies. OKX, established in Beijing in 2017 and now headquartered in the Seychelles, applied for its license in November. Another company, HKVAEX, which has connections to the prominent Binance exchange founded in China, applied just last month.
While Binance doesn’t have a listed headquarters, its founder, Zhao Changpeng, was spending significant time in Dubai before facing arrest in the US last year for alleged violations of anti-money laundering laws. The current CEO, Richard Teng, also identifies his location as Dubai on his X account.
Additionally, Crypto.com, which originated in Hong Kong and is now based in Singapore, submitted its license application this month. Reports suggest that according to the SFC, a total of 18 companies have submitted their applications as of Monday.
