Summary:
License Withdrawal: HKX decided to withdraw its application for the Type 1 and Type 7 licenses under the Securities and Futures Ordinance (Cap. 571) and the virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).
User Advisory: The management team has advised all existing users to withdraw their crypto assets.
Market Impact: As of July 22, a total of 13 cryptocurrency exchanges or trading platforms have withdrawn their license applications in Hong Kong, with one having its application returned for undisclosed reasons.
Cryptocurrency exchange HKX has joined the growing list of exchanges that have withdrawn their license applications to the Hong Kong Securities and Futures Commission (SFC). On July 18, the HKX management team announced its decision to shut down the Hong Kong-based crypto exchange, advising existing users to withdraw their crypto assets.
Official Statement: “We would like to inform you that our management team has, after careful consideration, decided to withdraw our application for the Type 1 and Type 7 licenses under the Securities and Futures Ordinance (Cap. 571) and the virtual asset service provider license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).”
Background on the Case: The decision by HKX to cease operations and withdraw its license applications reflects a broader trend among cryptocurrency exchanges in Hong Kong. Regulatory challenges and market conditions have led to an increasing number of exchanges exiting the market.
HKX’s decision to shut down its operations and withdraw its license applications highlights the ongoing regulatory challenges and market shifts affecting cryptocurrency exchanges in Hong Kong. This move is part of a broader trend, with 13 exchanges having exited the market to date.
Disclaimer:
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