HTX withdraws application for license in Hong Kong

Cryptocurrency exchange HTX (formerly Huobi) refused to obtain a license to operate in Hong Kong. This was reported by local media with reference to a list of applicants who submitted applications to the Securities and Futures Commission of Hong Kong (SFC).

According to available information, HTX submitted the application through a subsidiary operated by HBGL Hong Kong Limited. In February 2024, five counterparties began the registration procedure in this jurisdiction.

Under the terms of the SFC, trading platforms that do not submit applications by February 29 must close their business in Hong Kong by May 31, 2024.

It should be noted that only two companies received a VATP license on the local market - OSL Digital Securities and Hash Blockchain. The licensing regime in the region was introduced in 2023, which resulted in a wave of applications from various exchanges.

In June 2023, HTX advisor Justin Sun said clearance could take 6 to 12 months. Experts estimate the cost of such a procedure at $25 million.

In September 2023, OKX global business director Andy Cheung said that the preparation of documents for operation in Hong Kong was in the final stages. In early February, cryptocurrency exchange Bybit also applied for VATP.

According to the SFC, a total of more than 15 firms are awaiting regulatory approval to provide digital asset trading services.