Hong Kong faces challenges as top cryptocurrency exchanges like OKX and Huobi HK withdraw license applications amidst stricter regulations. Unlicensed platforms must cease operations by May 31, 2024, with Gate.HK already halting new registrations and deposits, scheduled for shutdown on May 28 due to regulatory complexities.

The city's aspiration to become a global virtual assets hub has hit a snag with the implementation of rigorous new regulations by the Securities and Futures Commission (SFC). The SFC has decreed that all virtual asset trading platforms (VATPs) must submit license applications by February 29, 2024, or risk closure within three months.

Initially, there was a surge in license applications, with 24 platforms initiating the process. However, more than seven platforms, including major players like OKX and Huobi HK, have retracted their applications, citing concerns about the challenging nature of the new regulatory environment.

The withdrawal of prominent exchanges highlights the significant impact of the regulatory changes on the cryptocurrency ecosystem in Hong Kong, underscoring the evolving landscape for virtual assets and trading platforms in the region.