Hong Kong Crackdown on Unlicensed Crypto Exchanges

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


Hong Kong's Clampdown on Unlicensed Cryptocurrency Exchanges

Hong Kong has implemented stringent measures against unlicensed cryptocurrency exchanges, issuing an immediate shutdown order. The Securities and Futures Commission (SFC) in Hong Kong has announced that eleven platforms, namely HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixincom, xWhale, YAX, Bullish, Crypto.com, WhaleFin, and Matrixport HK, are now considered applicants awaiting licensing.

Among the prominent offshore exchanges, only Crypto.com has obtained approval, with others like OKX, Bybit, Gate, HTX, and Binance opting to withdraw. Authorities in Hong Kong have made it clear that cryptocurrency exchanges must either seek licensing by February 29 or terminate operations within three months to safeguard investor interests.

The pressure intensified as over 22 cryptocurrency exchanges initiated the application process to maintain their regional activities. However, as the deadline approached, many exchanges retreated and withdrew their applications.

Gate.HK, headquartered in Hong Kong, acknowledged the necessity for a significant platform overhaul to adhere to the stringent regulatory standards in Hong Kong.

Various applicants, including Gate.HK, encountered obstacles detailed by prominent blockchain journalist Colin Wu. These challenges included the SFC's requirement that license applicants commit not to engage mainland Chinese users worldwide, proving to be a decisive factor leading to their reluctance.

Today, the new licensing framework for virtual asset trading platforms (VATP), established by the China Securities Regulatory Commission, has come into force. The transitional arrangements under this system enable operators to apply for a license and conform to the updated regulatory norms starting June 1.

This provision allows them to continue offering virtual asset services in Hong Kong until the authorities render a final verdict on their license petitions.

Speaking on the issue, Colin Wu highlighted a Hong Kong legislator's critique, emphasizing the modest scale of current applicants and the importance for Hong Kong to uphold a cautious approach from the outset, aiming to foster innovation without any form of risk.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Traders Predict Early Release of OpenAI's GPT-6 Model

chest

Prediction market traders are optimistic about the early release of OpenAI's GPT-6 model, estimating a 59% chance of launch by September 15.

user avatarTando Nkube

Visa Seeks New Crypto Stablecoin Partner for Global Settlements

chest

Visa is seeking a new crypto stablecoin partner to enhance its global settlement capabilities after the acquisition of its previous partner, BVNK, by Mastercard.

user avatarKofi Adjeman

AMD's Gaming Division Struggles Amid AI Market Concerns

chest

AMD's gaming division faces challenges with a 31% revenue dip, raising concerns about its ability to protect stock value amid potential AI market fluctuations.

user avatarSatoshi Nakamura

Michael Burry Warns of Potential AI Bubble Burst

chest

Michael Burry warns of a potential AI bubble burst that could lead to significant losses in tech stocks, particularly for companies like AMD.

user avatarNguyen Van Long

Nike Stock Hits 12-Year Low Amid Rebound Speculation

chest

Nike's stock closed at a 12-year low of $39.09, raising concerns about its future performance and potential for a rebound.

user avatarJesper Sørensen

Payward Joins Project Glasswing to Boost Cybersecurity Efforts

chest

Payward, the parent company of Kraken, has joined Anthropics Project Glasswing to enhance cybersecurity by utilizing Claude Mythos 5 for identifying security vulnerabilities.

user avatarRajesh Kumar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.