Hong Kong, as of February 29, has stopped accepting license applications from crypto exchanges and will soon block services of all non-compliant trading platforms. The Securities and Futures Commission (SFC) of Hong Kong noted that all crypto exchanges that have not applied for a license must cease their operations by May 31, 2024.
Legal Proceedings Continue in Hong Kong
Hong Kong SFC also called on investors using crypto asset trading platforms to prepare early and switch to one of the players who has either obtained a business license or has applied for one.
The SFC has officially licensed two crypto trading operators in Hong Kong; OSL Digital Securities on December 15, 2020, and HashKey Exchange on November 9, 2022. The regulator received license applications from 22 crypto trading platforms, including four exchanges that applied under the SFC’s previous opt-in regime.
In addition, four more exchanges including Huobi HK, Meex, BitHarbour, and Ammbr had applied for a license but later either withdrew or had their applications returned. The SFC will also maintain a public list of crypto platforms that will eventually need to be shut down by law, aiming to inform citizens about the relevant risks.
During the shutdown period, Hong Kong will limit the operational capacity of the exchange and will mandate the cessation of all marketing activities in the region. The Hong Kong SFC will also publish a list of crypto exchanges that are expected to be licensed as of June 1, 2024. However, it will not guarantee the acquisition of a license for all the names mentioned.
Noteworthy Details
After being licensed by the Hong Kong SFC, crypto exchanges can incorporate individual investors to trade Bitcoin and Ethereum. Various altcoins and stablecoins are currently under review by the SFC for trading approval. The Hong Kong-based crypto exchange BitForex recently cut off communication channels after suspending withdrawal transactions for at least three days.
The exchange’s X account has not been updated since May 2023. On the official Telegram channel, BitForex users continue to report issues with their accounts, ranging from being unable to access their accounts to the dashboard not showing any assets.
