Hong Kong has taken a firm stance against unlicensed cryptocurrency exchanges. Simply put, those are now forbidden in the country.
The Securities and Futures Commission (SFC) mandated that all crypto exchanges in the region must have a valid operational license or cease operations immediately. This move is aimed at bolstering investor protection and ensuring regulatory compliance.
By the February 29 deadline, over 22 exchanges had applied for licenses. However, many withdrew their applications just before the deadline. Prominent players such as OKX and Huobi HK exited the market in May, with Gate.HK citing a need for a major platform overhaul to meet regulatory requirements.
Gate.HK has halted new user registrations and marketing, giving existing users until August 28 to withdraw funds. The platform will delist all tokens by May 28. Despite this, Gate.HK expressed intentions to return to the Hong Kong market after obtaining the necessary licenses.
As of May 31, only HashKey and OSL Exchange have been approved. The SFC plans to release the full list of licensed exchanges by June 1. This regulatory crackdown highlights Hong Kong's commitment to a secure crypto trading environment.
Investors are advised to check the official list of approved exchanges to mitigate risks. This decisive action underscores Hong Kong's dedication to maintaining a transparent and secure virtual asset market.