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Cryptocurrency heavyweight HTX has suspended its plans to operate in Hong Kong. The company, which aimed to obtain a license in the city and had submitted the necessary application, retracted its application just three days later. This decision occurred shortly before the deadline set by the Hong Kong Securities and Futures Commission (SFC).
Why Did Cryptocurrency Exchange HTX Withdraw Its Application?
HTX has not yet provided an explanation for its withdrawal. However, this abrupt decision could be interpreted as a sign of significant changes in the cryptocurrency world. This is particularly noteworthy considering Hong Kong’s potential to become a major hub for cryptocurrency exchanges.
Last year, according to statements by one of the cryptocurrency exchange’s advisors, Justin Sun, it was known that HTX planned to establish a new platform called Huobi Hong Kong in the city and to obtain a license for it. However, it now seems that these plans have been put on hold.
HTX’s withdrawal of its application highlights the uncertainty of cryptocurrency regulations in Hong Kong. The city’s new regulations set deadlines for cryptocurrency exchanges to obtain licenses or cease operations. However, these regulations can pose practical challenges for some companies.
Hong Kong as a Significant Market
The withdrawal of HTX’s application underscores the importance of Hong Kong as a market in the cryptocurrency world. With the tightening of cryptocurrency regulations in China, many companies have started to see Hong Kong as an alternative. However, the process and conditions for obtaining the necessary licenses to operate in Hong Kong remain unclear.
In my opinion, the withdrawal of HTX’s license application in Hong Kong can be seen as a reflection of the changes and uncertainties in the cryptocurrency world. This situation could lead other companies in the industry to make similar decisions, potentially increasing Hong Kong’s impact on the cryptocurrency market. However, as no statement has been made yet, definitive conclusions are still unclear. Likely, Justin Sun will provide information on the matter.
