Key Takeaways:
- Gate.HK closed down and withdrew its crypto trading license application in Hong Kong.
- Gate.HK plans to return to the Hong Kong market after obtaining the necessary regulatory approvals
In a significant move impacting the crypto industry, Gate.HK, the Hong Kong arm of crypto exchange Gate.io, has announced the closure of its operations and the withdrawal of its crypto trading license application.
The platform is urging users to withdraw their assets by August 28, with token delisting, including major cryptocurrencies like Bitcoin and Ethereum, scheduled for May 28. Gate.HK has halted new registrations and deposits immediately as it prepares for a major overhaul.
Gate.HK, which launched officially in May 2023, submitted its virtual asset trading platform application to the Hong Kong Securities and Futures Commission (SFC) in February this year but withdrew the application on May 22, as confirmed by the SFC’s website.
The reasons behind this sudden withdrawal have not been disclosed by the SFC, raising speculation within the crypto community.
In a statement, Gate.HK mentioned, “We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”
The decision by Gate.HK to close its operations and withdraw its license application is part of a broader trend among crypto exchanges in Hong Kong facing stringent new regulatory requirements.
Several major digital asset platforms, including Crypto.com, OKX, HKVAX, and Bullish, are now taking steps to comply with Hong Kong’s cryptocurrency licensing requirements, which include risk profiling, insurance, asset custody measures, and restrictions on the types of tokens allowed for trading.
This development comes amidst similar moves by other virtual asset service providers in Hong Kong, indicating the challenges of navigating the regulatory framework in one of Asia’s key financial hubs. HKVAEX, for example, another Hong Kong-based crypto exchange platform allegedly linked to Binance, recently announced its closure after withdrawing its license application earlier this year.
Despite these setbacks, Gate.HK’s plans to return to Hong Kong’s crypto market reflect its commitment to complying with regulations and contributing to the growing virtual asset ecosystem in the region.
