HTX Withdraws Hong Kong Crypto Exchange Application

Hong Kong’s HTX, previously known as Huobi Global, has pulled back its application for a license to operate a cryptocurrency exchange, according to a filing on the Securities and Futures Commission (SFC) website dated February 23.

HTX Reason for Withdrawal Unspecified

HTX, headquartered in Seychelles and linked to entrepreneur Justin Sun, founder of TRON, hasn’t disclosed the specific reasons behind its withdrawal from the licensing process. Despite repeated attempts, a representative from HTX remained unreachable for comment at the time of publication.

Licence applications have been returned, refused or withdrawn — Securities and Futures Commission website.

Navigating Challenging Waters

The decision by HTX to withdraw its application comes amidst a challenging period for the exchange and its sister platform Poloniex. In recent years, both exchanges have faced security breaches. Notably, Poloniex encountered a major security breach in November, resulting in a loss of $125 million from its hot wallet.

Despite these setbacks, Sun, the owner of both platforms, assured users that the losses were manageable and could be absorbed using the exchanges’ revenue. Sun previously emphasized the safety of user deposits, stating they were “100% safe” despite the series of breaches.

Sun revealed that both HTX and Poloniex had largely recovered from the security incidents, with the majority of user withdrawals now resumed.

Crypto.com Enters the Arena

While HTX steps back, Crypto.com, a prominent cryptocurrency exchange headquartered in Singapore, is stepping up its efforts to enter the Hong Kong market. In January, the company submitted an application to the Hong Kong SFC seeking approval to operate as a virtual asset trading platform (VATP). This move reflects Crypto.com’s strategic expansion plans and its commitment to regulatory compliance.

Key Takeaways:

• HTX Withdrawal: HTX, formerly Huobi Global, has withdrawn its application for a crypto exchange license in Hong Kong, citing unspecified reasons.
• Security Concerns: The decision follows security breaches experienced by HTX and its sister platform Poloniex. Despite these challenges, owner Justin Sun remains optimistic about the platforms’ resilience.
• Crypto.com’s Application: In contrast, Crypto.com is actively pursuing regulatory approval to operate in Hong Kong, signaling its intent to establish a presence in the region’s cryptocurrency market.