HTX’s Hong Kong affiliate withdraws license application again

HTX’s Hong Kong affiliate withdrew its license application for the second time on Tuesday, adding uncertainty about whether the exchange can legally operate in the region.

HBGL Hong Kong Limited, or Huobi HK, has been removed from the Securities and Futures Commission’s list of virtual asset trading platform applicants to the list of those who have withdrawn their applications, according to the SFC’s website.

The SFC’s license application page showed that Huobi HK was removed from the list on Tuesday. That came after the company re-submitted the application on February 26 after its previous application was withdrawn on February 23.

The SFC did not specify the reason why the firm withdrew the application. Huobi HK did not immediately respond to The Block’s request for comment.

The Hong Kong SFC stipulates that crypto trading platforms that fail to submit their license applications by Feb. 29 must close down their businesses in Hong Kong by May 31 or within three months of further notification.

Unlike its neighboring Chinese mainland’s broader crackdown on crypto trading and mining, Hong Kong rolled out the welcome mat for crypto firms last year. In June 2023, Hong Kong officially started its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. Hong Kong has granted licenses to two platforms — HashKey and OSL.

Many global exchanges have applied for such retail trading licenses. The SFC is officially reviewing applications from 20 crypto firms, including OKX, Bybit, Bullish and Crypto.com, according to its website.

HKVAEX, a crypto platform reportedly linked to Binance, announced last month that it was shutting down after withdrawing its license application on March 28. The platform officially closed on May 1.