HTX (Formerly Huobi Global) Abruptly Withdraws Hong Kong Crypto License Application
This withdrawal adds to a small but notable list of cryptocurrency exchange operators who have either withdrawn their license applications or had their applications returned.
HTX, formerly known as Huobi Global, has unexpectedly withdrawn its application for a license to operate as a cryptocurrency exchange in Hong Kong, just three days after submitting the application. This retreat marks a significant reversal from its previously publicized plans to establish a foothold in the city's crypto market following its exit from the mainland market, according to the South China Morning Post report.
The decision to withdraw the application, made by HTX's Hong Kong entity, HBGL Hong Kong Limited, was confirmed by the Securities and Futures Commission (SFC), which publishes a list of crypto exchange license applicants on its website. The specific reason for the withdrawal was not disclosed by HTX, and the company has not provided any official comment on the matter.
This withdrawal adds to a small but notable list of cryptocurrency exchange operators who have either withdrawn their license applications or had their applications returned. HTX's move is particularly noteworthy given its status as the fifth-largest cryptocurrency exchange globally by 24-hour trading volume, according to CoinGecko.
HTX had originally announced its intention to pursue a license in Hong Kong in February of the previous year, with adviser Justin Sun making the statement via Twitter. The company planned to launch a new exchange called Huobi Hong Kong, emphasizing compliance with the city's regulatory framework.
The withdrawal occurred shortly before the deadline for crypto exchanges to apply for licenses under Hong Kong's new regulatory regime, which mandates that companies must obtain a license by February 29 or cease operations in the city by June 1. Despite this deadline, only a few international cryptocurrency firms have submitted applications, with Hong Kong being viewed as an attractive market, particularly for companies with ties to mainland China.
Some notable companies that have submitted applications include OKX and HKVAEX, the latter being associated with Binance, the world's largest cryptocurrency exchange. Additionally, Crypto.com, originally founded in Hong Kong, also applied for a license this month. As of Monday, a total of 18 companies have submitted license applications to the SFC.
