Hong Kong sees third major cryptocurrency exchange withdraw licence application as Gate.io unit drops out
- Gate.HK, the Hong Kong arm of cryptocurrency exchange Gate.io, says it took ‘a proactive step’ to withdraw its application
- Eight firms have withdrawn their applications to date, including a firm backed by Binance, and an affiliate of HTX
Gate.HK, the Hong Kong arm of cryptocurrency exchange Gate.io, has withdrawn its application for a virtual-asset trading platform licence, the third company affiliated with a major global exchange to end its bid to legally operate in the city under a new exacting regime.
The company “took a proactive step” to withdraw its application as part of a “platform overhaul”, and it has stopped registering new users, taking deposits and marketing its services in Hong Kong, according to its statement published on Wednesday.
Gate.HK, launched in May last year, submitted its application to the Securities and Futures Commission (SFC) in February under new rules that require exchanges serving customers in Hong Kong to be licensed.
The platform said it will cease trading on May 28, as required by the city’s regulations, and it suggested users withdraw their assets by August 28.
Hong Kong’s new mandatory licensing regime for centralised exchanges, which came into effect in June last year amid the city’s push to become a virtual asset hub, calls for intensive compliance efforts and capital investments from firms hoping to gain a foothold in the city.
