• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Hong Kong Crackdown on Unlicensed Crypto Exchanges

user avatar

by Giorgi Kostiuk

2 years ago


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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Metaplanets CEO Defends Bitcoin Purchases Amid Criticism

chest

Simon Gerovich, CEO of Metaplanets, defends the company's Bitcoin purchases and trading strategies, emphasizing transparency and countering misinformation.

user avatarMohamed Farouk

Metaplanets Reports Heavy Net Loss Despite Strong Revenue from Options

chest

Metaplanets reported a heavy net loss of approximately $680 million for fiscal 2025, despite strong revenue of $89 million from options trading.

user avatarBayarjavkhlan Ganbaatar

Bitcoin Faces Quantum Computing Discount Risk

chest

New research indicates that Bitcoin's fair value could be discounted by up to 60% by 2028 due to Quantum Computing threats.

user avatarTenzin Dorje

Retail Investors Face Billions in Losses from TRUMP and MELANIA Memecoins

chest

Retail investors have incurred over $4 billion in losses on the official TRUMP and MELANIA memecoins, which have plummeted significantly since their launch.

user avatarElias Mukuru

Bitcoin Spot ETFs Face Largest Drawdown in History

chest

Bitcoin spot ETFs have experienced the largest drawdown in history, with a decline of 100,300 BTC following the October all-time high, reflecting a risk-off environment and institutional derisking.

user avatarDiego Alvarez

t54ai Introduces x402 Facilitator for Seamless AI Payments on XRP Ledger

chest

t54ai has launched an innovative x402 facilitator on the XRP Ledger, enabling AI agents to pay for API calls and digital services using XRP or RLUSD.

user avatarKenji Takahashi

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.