Hong Kong Halts Crypto Exchange Licenses; Non-Compliant Platforms to Shut Down by May 2024
Summary:
Hong Kong's Securities and Futures Commission (SFC) has halted licence applications from cryptocurrency exchanges as of February 29th. Trading platforms failing to file applications must cease operations by May 2024. The SFC encourages investors to migrate to platforms either holding or applying for licenses. The Commission will additionally maintain a public list of non-compliant platforms due to shutdown by law. BitForex, a Hong Kong-based crypto exchange, has raised concerns following withdrawal suspensions and user-reported account issues.
As of February 29, Hong Kong has halted licence applications from cryptocurrency trading platforms and is now planning to mandate all non-compliant outlets to cease operations within the region. All cryptocurrency exchanges in Hong Kong that neglected to submit their licence applications are required to terminate their operations by the end of May 2024, as outlined by Hong Kong's Securities and Futures Commission (SFC). The SFC also encouraged users of virtual asset trading platforms to begin preparations to shift to providers that have successfully secured or applied for operating licences.
OSL Digital Securities, licensed on December 15, 2020, and HashKey Exchange, licensed on November 9, 2022, are two crypto trading operators that have been formally licenced by the SFC. The authority has received applications from 22 cryptocurrency trading platforms, which include four exchanges that applied under the previous opt-in regime established by the SFC for crypto trading platforms.
Additionally, four exchanges - Huobi HK, Meex, BitHarbour and Ammbr - initially applied for a licence but later withdrew or saw their applications returned. It's the SFC's plan to publicly keep a record of crypto platforms that are legally required to shutdown, with the aim to warn citizens about potential risks. During the shutdown phase, Hong Kong intends to curtail the exchanges' operational abilities and halt all promotional activities in the region. On June 1, 2024, a list of licenced crypto exchanges will be published by the Hong Kong SFC, but it's important to note this does not guarantee licence acquisition.
Once an exchange has secured a licence from the SFC, they're permitted to onboard retail investors for trading Bitcoin (BTC) and Ether (ETH). Presently, several altcoins and stablecoins are under review by the SFC for trading approval.
BitForex, a cryptocurrency exchange based in Hong Kong, recently fell silent after suspending withdrawals for three days at least. There's growing concern over the exchange after blockchain researcher ZachXBT reported questionable activity. BitForex's official telegram reports that users are facing issues with their accounts ranging from access problems to vanished dashboard assets. Several users have encountered a pop-up screen indicating they've been blocked from the company's website. A similar problem was also identified by Cointelegraph's internal investigation.
Published At
2/29/2024 2:00:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.