Hong Kong has issued a directive requiring all crypto exchanges without a license from the Securities and Futures Commission (SFC) to stop operations immediately.
Crypto exchanges were instructed to apply for a license by February 29 or shut down within three months.
Over 22 exchanges pursued licensing, but many retracted their applications just before the deadline.
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OKX, Huobi HK and four other crypto exchanges exited the Hong Kong market in May.
Among them was also the local crypto exchange Gate.HK, which ceased operations on May 23 and allowed existing customers to withdraw funds until August 28. Gate.HK cited the need for an extensive redesign of its trading platform to align with Hong Kong's regulatory requirements.
Gate.HK is actively working on the aforementioned overhaul. We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.
18 exchanges have submitted license applications, and the SFC is expected to announce approved ones by June 1. Investors can check the list of approved exchanges on SFC's official website. At the time of writing, only HashKey and OSL Exchange have received approval.
Overall, the SFC's regulations signal a future of tight oversight and compliance for crypto exchanges.
Meanwhile, the Hong Kong Securities and Futures Professionals Association (HKSFPA) proposed in April that the city's crypto firms establish independent self-regulatory committees.
