Gate.io and OKX withdraw from Hong Kong licensing attempts in the crypto exchange market.
Recent developments have seen two major global exchange subsidiaries, Gate.io and OKX, withdrawing their applications for operational licenses in Hong Kong within the past two days.
This move is part of a larger trend, with a total of eight firms, including exchanges supported by Binance and HTX, also retracting their licensing attempts in the city-state, as reported on the Securities and Futures Commission (SFC) website.
Meanwhile, the regulator continues to review applications from various other cryptocurrency exchanges such as Crypto.com, Bullish, and Matrixport. It is worth noting that only two exchanges, OSL and HashKey, have been granted licenses in the region by the SFC.
OKX Announcement
In a statement released on May 24, OKX HK, a crypto exchange based in Hong Kong, declared the withdrawal of its application for a Virtual Asset Service Provider (VASP) license in the region. The exchange confirmed:
“OKX will cease to offer centralized virtual asset trading services to residents of Hong Kong by May 31, 2024, in compliance with regulatory requirements. Customer funds are secure, and withdrawal services will not be impacted. After May 31, 2024, withdrawals will be the only option for customers.”
As a result, OKX advised its clients against making deposits after May 31, as these deposits may not be processed automatically. The exchange has also set an August 31 deadline for users to withdraw their assets from the platform.
Gate.io Application Retraction
Similarly, Gate.io’s Hong Kong division made an announcement on May 23 that it had withdrawn its application for a virtual asset trading platform license. The company clarified that this decision was part of a larger platform revamp strategy that would see a halt to new user registrations, deposits, and marketing activities in Hong Kong. Additionally, major tokens like Bitcoin, Polkadot, and Ethereum are set to be delisted.
The platform will cease all trading operations by May 28 and has advised users to withdraw their assets before August 28.
Established in 2023, Gate.HK had submitted its license application to the SFC in February to comply with new regulations mandating that exchanges catering to Hong Kong customers must secure an operational license in the region.
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