Cryptocurrency exchange HTX (formerly Huobi Global) has withdrawn its application for a license to operate in Hong Kong, in a major setback from its much-touted plans to acquire customers in Hong Kong after exiting the mainland market.
According to the Securities and Futures Commission (SFC), HTX's Hong Kong business, HBGL Hong Kong Limited, withdrew its license application for virtual asset trading platform Huobi HK on February 23, three days after filing the application. publishes a list of crypto exchange license applicants on its website.
HTX has not disclosed the reason for its withdrawal. He did not immediately respond to a request for comment.
Do you have questions about the biggest topics and trends from around the world? Find your answers with SCMP Knowledge. SCMP Knowledge is a new platform of curated content with explainers, FAQs, analyzes and infographics brought to you by our award-winning team.
According to the SFC, three virtual currency exchanges have so far withdrawn their applications, and one has had their applications returned.
Justin Sun, advisor to Huobi. Photo: Bloomberg, alt=Justin Sun, Huobi advisor. Photo: Bloomberg>
The Beijing-founded exchange is the world's fifth-largest exchange by 24-hour trading volume, according to data from market tracker CoinGecko, and was one of the largest companies to apply for a license in Hong Kong.
HTX first announced its plans to seek a license in Hong Kong in February last year through a statement on Twitter from its advisor Justin Sun (now X). The outspoken crypto entrepreneur said the company will launch a new exchange called Houbi Hong Kong. Compliant with new city regulations.
The withdrawal comes just days before the deadline for crypto exchanges wishing to operate legally in Hong Kong to apply for a license.
Under the city's new regulatory regime for virtual assets that took effect last year, companies selling or marketing virtual currencies to Hong Kong residents must apply for a license by February 29 this year or by June 1. It is necessary to cease operations in Hong Kong.
Although only a few international crypto companies have submitted applications, the Hong Kong market is seen as a particularly attractive option for companies with strong ties to mainland China, most of whom have been linked to the crypto industry by the Chinese government. During the crackdown, the company moved its headquarters overseas.
These companies include some of the largest companies in the industry.
OKX, which was founded in Beijing in 2017 and is currently headquartered in Seychelles, submitted its license application in November. HKVAEX, an exchange founded by China and affiliated with Binance, the world's largest cryptocurrency exchange, filed last month.
Binance does not currently list its headquarters, but founder Zhao Changpeng spent much of his time in Dubai before being arrested in the United States last year for violating anti-money laundering laws. The company's current CEO, Richard Teng, lists his location as Dubai on his X account.
Crypto.com, founded in Hong Kong and based in Singapore, also applied for a license this month. A total of 18 companies have submitted applications as of Monday, according to the SFC.
Additional reporting by Matt Haldane
This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. twitter page. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
