Hong Kong has ceased accepting license applications from cryptocurrency exchanges as of February 29th and will soon require noncompliant trading platforms to shut down their operations locally. The Securities and Futures Commission (SFC) of Hong Kong has stated that all crypto exchanges in the region that have failed to file for license applications must wind up their business by May 31st, 2024.
The Hong Kong SFC has also urged investors who use virtual asset trading platforms to start making preparations early and transition to platforms that have either already obtained operating licenses or have applied for one. The SFC has officially granted licenses to two crypto trading operators in Hong Kong: OSL Digital Securities on December 15th, 2020, and HashKey Exchange on November 9th, 2022. The regulator has received license applications from a total of 22 crypto trading platforms, including four exchanges that applied under the SFC’s previous opt-in regime for crypto trading platforms.
Additionally, four other exchanges – Huobi HK, Meex, BitHarbour, and Ammbr – had initially applied for the license but later either withdrew their applications or had them returned. The SFC will also maintain a public list of crypto platforms that will eventually be required to shut down by law, aiming to inform citizens about the associated risks.
During the closure period, Hong Kong will restrict the operational capabilities of the exchanges and enforce the closure of all marketing activities in the region. The Hong Kong SFC will also publish a list of crypto exchanges considered to be licensed as of June 1st, 2024. However, it does not guarantee that all the mentioned platforms will obtain a license.
Once licensed by the Hong Kong SFC, the crypto exchanges will be able to onboard retail investors for trading Bitcoin (BTC) and Ether (ETH). The SFC is currently reviewing various altcoins and stablecoins for trading approval.
Hong Kong-based crypto exchange BitForex has recently gone silent after suspending withdrawals for at least three days. The exchange’s X account has not been updated since May 2023. Users on BitForex’s official Telegram channel have reported issues with their accounts, ranging from being unable to log in to the dashboard not displaying any assets. Some users have received a pop-up screen indicating that they are blocked from accessing the company’s website. Cointelegraph’s internal investigation has confirmed the same issue.
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