The Hong Kong affiliate of cryptocurrency exchange HTX, formerly Huobi Global, has for the second time withdrawn its application for a licence to operate a virtual asset trading platform (VATP) in the city, forcing it to close operations as required by the city’s regulations.
Huobi HK has not publicly disclosed the reason for its latest withdrawal, or whether it was instructed by the SFC to do so. In either case, HBGL must cease operating its exchange in the city within three months.
Under Hong Kong’s new virtual asset regime, the SFC may send a notice to a firm if it does not qualify for a so-called deeming arrangement, in which the platform is deemed to be licensed from June 1 while it awaits full approval for a licence. Businesses that fail to qualify are required to shut down by May 31 or within three months of being notified by the SFC, whichever is later.
HBGL did not immediately respond to a request for comment on Wednesday.
HTX, founded in Beijing in 2013, is the world’s sixth-largest crypto exchange by 24-hour trading volume, according to data from market tracker CoinGecko.
The company has since declared publicly that HBGL, which was pursuing the licence for Huobi HK, is “independently managed and operated” and is not involved in HTX’s management and operation.
There are now 20 applicants for Hong Kong’s VATP licence, with OKX, Crypto.com, Bybit and Bullish among the largest.