Hong Kong decisively expels all crypto exchanges lacking proper licensing

All cryptocurrency exchanges operating in Hong Kong without a valid operational license from the Securities and Futures Commission (SFC) are now obligated to immediately cease their operations in the region, according to new regulations aimed at reducing risks for investors. To comply with the ultimatum, exchanges were given the option to either apply for a license by February 29 or shut down within three months. Over 22 exchanges submitted license applications during this period, but several of them chose to withdraw their applications just before the deadline. Notably, in May, six exchanges, including major global players like OKX and Huobi HK, pulled out of the Hong Kong market. While most exchanges did not provide reasons for their decisions, Hong Kong-based Gate.HK cited the need for a “major overhaul” of its trading platform to meet regulatory requirements. As a consequence of the license withdrawal, Gate.HK has ceased user acquisition and marketing, and existing users have until August 28 to withdraw their funds. Additionally, the Gate.HK trading platform will no longer be operational from May 28, and all previously tradable tokens, such as Bitcoin (BTC), Ether (ETH), Solana (SOL), and Polygon (MATIC), will be permanently delisted. As of May 31, 18 cryptocurrency exchanges have applied for an operational license in Hong Kong, with the SFC set to announce the approved exchanges by June 1. At present, the only approved exchanges in Hong Kong are HashKey and OSL Exchange. However, it is important to note that not all cryptocurrency exchanges will be granted a license and may be required to shut down their operations in Hong Kong as a result of the SFC’s decision. To minimize the risks associated with cryptocurrency trading, the SFC advises investors to refer to the official list of approved exchanges.