HTX, a cryptocurrencycurrency exchange in Hong Kong that was previously known as Huobi Global, withdrew its license application shortly after filing it.
According to Hong Kong’s Securities and Futures Commission (SFC), HTX’s subsidiary, HBGL Hong Kong Limited, withdrew its application on February 23rd. According to an HTX representative, Huobi HK operates independently of the exchange.
The withdrawal occurs before Hong Kong’s regulatory deadline for exchanges to apply and check for licenses on February 29th. Exchanges that fail to apply on time must suspend business in Hong Kong by May 31st.
The situation underlines the difficult regulatory environment between mainland China, which has prohibited cryptocurrencycurrency trading, and Hong Kong, which accepted applications for formal digital asset exchange licenses in June.
So yet, just two companies, HashKey and OSL, have received Hong Kong virtual asset trading licenses. However, around 20 significant industry companies have applied, including well-known exchanges such as OKX and Crypto.com.
Huobi Global was once one of China’s top exchanges before discontinuing mainland operations. The unexpected withdrawal of its Hong Kong subsidiary’s application raises concerns about Huobi’s regulatory strategy.
Both HTX, which is currently headquartered in the Seychelles, and Binance maintain Hong Kong licensing applications via local businesses. It is unknown whether they will follow Huobi’s lead and withdraw, or if new background influenced Huobi’s decision.
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