tl;dr
Several major crypto firms, including OKX, Gate.io, KuCoin, Binance, and HTX, have withdrawn their applications for a Virtual Asset Trading Platform (VATP) license in Hong Kong. This move comes as regulatory pressure from mainland China prompts these firms to reconsider their operations in Hong Kong...
Several major crypto firms, including OKX, Gate.io, KuCoin, Binance, and HTX, have withdrawn their applications for a Virtual Asset Trading Platform (VATP) license in Hong Kong. This move comes as regulatory pressure from mainland China prompts these firms to reconsider their operations in Hong Kong. The Securities and Futures Commission (SFC) has reminded firms of the June 1 deadline to obtain licenses to continue operating in the city. The stringent demands from the SFC and the inability to serve customers from mainland China are cited as reasons for the withdrawal of license applications. The new virtual asset regulatory regime in Hong Kong requires firms to obtain licenses, and those who have withdrawn their applications will be required to cease operations in the city. The commission emphasized the need for firms to prevent mainland Chinese residents from accessing their virtual assets-related services, reflecting China's escalated crypto clampdown in 2021.
Regulatory pressure from mainland China is pushing many top crypto firms away from Hong Kong. OKX, Gate.io, KuCoin, Binance, and HTX have all withdrawn their VATP license applications in Hong Kong. The SFC has reminded firms about the June 1 license deadline for continuing operations in the city. Reports indicate that local affiliates of top exchanges with ties to mainland China have rescinded their applications for a Virtual Asset Trading Platform (VATP) license in Hong Kong. Despite previous expansion into other regions following China's initial regulatory clampdown, these firms expressed renewed interest in Hong Kong's new virtual asset regulatory regime. However, the stringent demands from the Securities and Futures Commission (SFC) and the inability to serve customers from mainland China have led to the withdrawal of their applications. Additionally, the SFC has emphasized the obligation for firms to fully comply with applicable laws and regulations and to prevent mainland Chinese residents from accessing their virtual asset-related services. China's intensified crypto clampdown in 2021 has further contributed to this shifting landscape.