Hong Kong-based cryptocurrency change Gate.HK has closed down after failing to satisfy the native licensing necessities that shall be enforced beginning June 1.
The Hong Kong Securities and Futures Fee (SFC) mandated that each one crypto exchanges within the area purchase an operational license. Exchanges that failed to use for a license should cease their companies by Could 31.
Following this requirement, Gate.HK submitted its license software to the SFC on Feb. 28. Nevertheless, the change withdrew the appliance on Could 22, citing the necessity for a “main overhaul” of its buying and selling platform.
As of Could 23, Gate.HK has ceased all actions associated to buying new customers and advertising and marketing. Present customers can not make deposits and are restricted to withdrawing funds solely till Aug. 28.
Gate.HK will pull the ultimate plug on its buying and selling platform on Could 28, when all tokens shall be completely delisted. The checklist of tokens included Bitcoin (BTC), Ether (ETH), Solana (SOL), Polygon (MATIC) and Tether (USDT), amongst others.
The crypto change intends to relaunch its companies solely after reconstructing its platform to adjust to Hong Kong’s regulatory necessities. These necessities embrace establishing Anti-Cash Laundering and Counter-Terrorist Financing measures. The corporate stated:
“Gate.HK is actively engaged on the aforementioned overhaul. We plan to renew our enterprise in Hong Kong sooner or later and contribute to the digital asset ecosystem after acquiring the related licenses.”
Earlier than Gate.HK’s exit, three different exchanges — Huobi HK, QuanXLab and IBTCEX — additionally withdrew their license purposes in Could. Altogether, 9 crypto exchanges have withdrawn their purposes in Hong Kong.
As of Could 24, twenty cryptocurrency exchanges are nonetheless energetic candidates for Hong Kong’s crypto license.
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A current Bloomberg report indicated that the SFC is contemplating permitting spot Ethe exchange-traded fund (ETF) issuers to incorporate an ETH staking choice, enabling them to generate passive revenue.
The SFC reportedly mentioned offering staking companies by way of licensed platforms with the nation’s crypto ETF issuers after fielding proposals in current weeks.
The monetary regulator is at the moment discussing the matter, and there’s no set timeline for implementation.
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