Tech
HTX Affiliate Huobi Hong Kong Withdraws Crypto License Application for Second Time and Must Close by August
The Hong Kong affiliate of cryptocurrency exchange HTX, formerly Huobi Global, has withdrawn for the second time its application for a license to operate a virtual asset trading platform (VATP) in the city, forcing it to shut down operations as required by city regulations.
THE Securities and Futures Commission (SFC) removed HBGL Hong Kong Limited from a list of cryptocurrency exchange license applicants on Tuesday after the company withdrew its application for its Huobi HK platform, according to the SFC website.HBGL first submitted its application on Feb. 20 before retiring on Feb. 23. Then resubmitted the question on February 26, just days before Hong Kong’s February 29 deadline for cryptocurrency exchanges hoping to operate legally in the city.
Huobi HK has not publicly disclosed the reason for its latest withdrawal, nor whether it has received instructions to do so from the SFC. In either case, HBGL will have to stop operating its exchange in the city within three months.
HTX advisor Justin Sun, who is also the founder of cryptocurrency firm Tron, announced last year that the exchange planned to obtain a license in Hong Kong. Photo: Bloomberg
Under Hong Kong’s new virtual asset regime, the SFC can issue a warning to a company if it does not qualify for a so-called rating agreement, in which the platform is deemed to be licensed from June 1 while it awaits full approval for a license. . Businesses that fail to qualify are required to close by May 31 or within three months of notification from the SFC, whichever is later.
HBGL did not immediately respond to a request for comment Wednesday.
HTX, founded in Beijing in 2013, is the world’s sixth-largest cryptocurrency exchange by 24-hour trading volume, according to data from market tracker CoinGecko.
The company has since publicly stated that HBGL, which was licensing for Huobi HK, is “independently operated and operated” and is not involved in the management and operation of HTX.
There are currently 20 applicants for the Hong Kong VAT license, including OKX, Crypto.com, Bybit and Bullish.