HTX affiliate Huobi Hong Kong withdraws crypto licence application for second time, must shut down by August
- HBGL, which operates Huobi HK, has withdrawn the licence application for unspecified reasons, requiring it to close the crypto exchange under local rules
- The HTX-affiliated company is the second-largest exchange with ties to mainland China to halt its bid for virtual asset licence after Binance affiliate HKVAEX
The Hong Kong affiliate of cryptocurrency exchange HTX, formerly Huobi Global, has for the second time withdrawn its application for a licence to operate a virtual asset trading platform (VATP) in the city, forcing it to close operations as required by the city’s regulations.
Huobi HK has not publicly disclosed the reason for its latest withdrawal, or whether it was instructed by the SFC to do so. In either case, HBGL must cease operating its exchange in the city within three months.
Under Hong Kong’s new virtual asset regime, the SFC may send a notice to a firm if it does not qualify for a so-called deeming arrangement, in which the platform is deemed to be licensed from June 1 while it awaits full approval for a licence. Businesses that fail to qualify are required to shut down by May 31 or within three months of being notified by the SFC, whichever is later.