Gate.io and OKX Withdraw Hong Kong License Applications Amid Regulatory Shifts

By: Eliza Bennet

Two prominent global exchanges’ subsidiaries— Gate.io and OKX—have withdrawn their applications for an operational license in Hong Kong in the last two days.

This decision is part of a broader trend; eight firms, including exchanges backed by Binance and HTX, have also abandoned their licensing efforts in the city-state according to a notice on the Securities and Futures Commission (SFC) website.

The regulator is still reviewing applications from several other exchanges, including Crypto.com, Bullish, and Matrixport. Notably, the SFC has approved licenses for only two exchanges in the region, OSL and HashKey.

In a May 24 notice, Hong Kong-based crypto exchange OKX HK announced the withdrawal of its application for a Virtual Asset Service Provider (VASP) license in the region. The exchange stated:

“OKX will cease to provide centralized virtual asset trading services to Hong Kong residents by 31 May 2024 (Friday) in accordance with regulatory requirements. Customer funds remain safe and withdrawal services will not be affected. After 31 May 2024, customers will only be able to withdraw.”

Similarly, Gate.io’s Hong Kong unit announced on May 23 that it had withdrawn its application for a virtual asset trading platform license.

The firm explained that the decision was part of a comprehensive platform overhaul strategy that would halt the registration of new users, deposits, and marketing activities in Hong Kong.

Additionally, the platform intends to delist all major tokens, including Bitcoin, Polkadot, Ethereum, and others.