Hong Kong's efforts to establish itself as a hub for regulated cryptocurrency trading hit another snag as HKX, a local exchange, withdrew its license application. This follows a string of similar decisions by other major players, casting doubt on the territory's crypto ambitions.
HKX announced the news on July 18th, citing a "careful consideration" by the management team. The exchange will cease operations entirely, advising users to withdraw their crypto holdings.
Regulatory Hurdles Cited
While specific reasons for the withdrawal weren't disclosed, HKX likely struggled to meet Hong Kong's stringent regulatory requirements. In February, HKX, along with several other exchanges, had applied for licenses under the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. However, Hong Kong's licensing process has proven to be a hurdle for many exchanges.
Exodus Grows
HKX joins at least 12 other cryptocurrency platforms that have abandoned their Hong Kong licensing bids in 2024. With one application being rejected and others withdrawing, the future of Hong Kong's crypto ambitions seems uncertain.
July 2024, Cryptoniteuae