HTX Withdraws Hong Kong Crypto License Application Again – What’s Happening?
Huobi HK, a subsidiary of HTX, has withdrawn its application for a cryptocurrency trading license from Hong Kong’s Securities and Futures Commission (SFC) for the second time. This decision was made just two months after Huobi HK resubmitted its application, following an initial withdrawal.
Hong Kong had set a regulatory deadline requiring crypto exchanges to obtain a license or cease operations in the region by the end of May. Since June 2022, Hong Kong has been actively establishing itself as a crypto hub by allowing licensed exchanges to offer retail trading services. However, only two platforms, HashKey and OSL, have obtained licenses so far. The SFC has also issued warnings against websites falsely claiming to be regulated exchanges.
The SFC’s website shows that several major global crypto exchanges are still undergoing the licensing process. The withdrawal of Huobi HK’s application raises doubts about the company’s ability to operate successfully in Hong Kong.
This incident seems to mirror the actions of HKVAEX, another crypto platform that ceased operations after withdrawing its license bid. HKVAEX was reportedly associated with Binance.
The withdrawal of Huobi HK’s license application is a setback for Huobi Global (HTX), one of the top five crypto exchanges globally. In early 2023, HTX announced plans to launch Huobi Hong Kong to comply with the city’s updated crypto regulations. However, Huobi HK operates independently from its parent company. The late February resubmission was an attempt to avoid shutting down operations on June 1, as required by the new regulatory regime.
Although only a few international crypto companies met the application deadline, Hong Kong was considered a desirable location for firms with Chinese roots that relocated overseas after China’s industry crackdown.