License Application Deadline Expires for Crypto Exchanges in Hong Kong

• Hong Kong crypto exchanges that have not applied must close their doors by May 31, 2024.
• Hong Kong will restrict the exchange’s ability to operate and shut down all regional marketing.

Hong Kong will soon force all non-compliant trading platforms to shut down locally, and the region has already ceased accepting licensing applications from cryptocurrency exchanges as of February 29. All Hong Kong cryptocurrency exchanges that have not applied for a license must close their doors by May 31, 2024, according to the Securities and Futures Commission (SFC) of Hong Kong.

Investors using virtual asset trading platforms are strongly encouraged by the Hong Kong SFC to “make preparations early” and switch to a company that has an operating license or has applied for one.

On December 15, 2020, OSL Digital Securities and on November 9, 2022, HashKey Exchange were officially approved as crypto trading operations in Hong Kong by the SFC. Among the 22 crypto trading platforms that sought licenses with the regulator were four exchanges that had previously registered under the SFC’s opt-in scheme for crypto trading platforms.

Severe Crackdown Anticipated

Furthermore, four other exchanges — Ammbr, BitHarbour, Huobi HK, and Meex — had previously submitted license applications but either withdrew or had theirs returned. For the sake of informing the public about the hazards involved, the SFC will also publicly keep track of the cryptocurrency platform that will be ultimately forced to shut down by law.

Throughout the shutdown, Hong Kong will restrict the exchange’s ability to operate and shut down all regional marketing. As of June 1, 2024, the Hong Kong SFC will also publish a registry of cryptocurrency exchanges that are considered to have obtained a license. Nevertheless, not all of the names indicated will be guaranteed a license procurement.

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