Hong Kong-based cryptocurrency alternate Gate.HK has closed down after failing to satisfy the native licensing necessities that can be enforced beginning June 1.
The Securities and Futures Fee of Hong Kong (HKSFC) mandated that each one crypto exchanges within the area purchase an operational license. Exchanges that failed to use for a license should cease their companies by Might 31.
Following this requirement, Gate.HK submitted its license software to the HKSFC on February 28. Nonetheless, the alternate withdrew the appliance on Might 22, citing the necessity for a “main overhaul” of its buying and selling platform.
As of Might 23, Gate.HK has ceased all actions associated to buying new customers and advertising. Present customers can now not make deposits and are restricted to withdrawing funds solely till Aug. 28.
Gate.HK will pull the ultimate plug on its buying and selling platform on Might 28, when all of the tokens can be completely delisted. The listing of tokens included Bitcoin (BTC), Ether (ETH), Solana (SOL), Polygon (MATIC) and Tether (USDT), amongst others.
The crypto alternate intends to relaunch its companies solely after reconstructing its platform to adjust to Hong Kong’s regulatory necessities. These necessities embody establishing Anti-Cash Laundering (AML) and counter-terrorism financing measures. The corporate stated:
“Gate.HK is actively engaged on the aforementioned overhaul. We plan to renew our enterprise in Hong Kong sooner or later and contribute to the digital asset ecosystem after acquiring the related licenses.”
Earlier than Gate.HK’s exit, three different exchanges — Huobi HK, QuanXLab, and IBTCEX — additionally withdrew their license functions in Might. Altogether, 9 crypto exchanges have withdrawn their functions in Hong Kong.
As of Might 24, twenty cryptocurrency exchanges are nonetheless lively candidates for Hong Kong’s crypto license.
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A current Bloomberg report indicated that the HKSFC is contemplating permitting spot ETH exchange-traded fund (ETF) issuers to incorporate an ETH staking possibility, enabling them to generate passive earnings.
The SFC reportedly mentioned offering staking companies by way of licensed platforms with the nation’s crypto ETF issuers after fielding proposals in current weeks.
The monetary regulator is presently discussing the matter, and there’s no set timeline for implementation.
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