HTX Withdraws Hong Kong Crypto License Application Again – What’s Going On?

HTX’s subsidiary, Huobi Global (HGBL) Hong Kong Limited, has once again withdrawn its application for a cryptocurrency trading license from Hong Kong’s Securities and Futures Commission (SFC), raising questions about the company’s future in the region.

HTX’s Huobi HK withdraws its Hong Kong license application for the second time, adding uncertainty to the company’s future in the region.

HTX’s Huobi HK Withdraws Hong Kong License Bid Again

Huobi HK, operated by HGBL, is no longer on the SFC’s list of virtual asset trading platform applicants, indicating it has withdrawn its application again. This decision came just two months after Huobi HK had re-submitted its application on February 26, following an initial withdrawal three days prior. The reasons for the withdrawal remain unspecified, but it necessitates the closure of the crypto exchange under the city’s virtual asset regulations.

Hong Kong’s Crypto Regulations and Licensing

Hong Kong had released a regulatory deadline that required crypto exchanges to obtain a license or cease operations in the region by the end of May if they failed to apply by February 29. To date, only two platforms, HashKey and OSL, have secured licenses from Hong Kong regulators. The SFC’s website indicates that numerous major global crypto exchanges, including OKX, Bybit, Bullish, and Crypto.com, are still undergoing the licensing process. The SFC is currently reviewing 20 such applications.

Setback for Huobi’s Global Expansion

The withdrawal of Huobi HK’s HTX Hong Kong License application presents a significant obstacle for Huobi Global (HTX), a major crypto exchange that ranks among the top five globally by 24-hour trading volume, according to CoinGecko data. In early 2023, HTX advisor and crypto influencer Justin Sun announced the company’s plan to launch a new Hong Kong-based exchange, Huobi Hong Kong, to meet the city’s updated crypto regulations. In February 2024, an HTX representative clarified that Huobi HK operates independently from its parent company.

Conclusion

Huobi HK’s late February resubmission was reportedly an attempt to avoid shutting down operations on June 1, as stipulated by the new virtual asset regulatory regime implemented in 2022. Despite the withdrawal, the Hong Kong market remains a desirable location for firms with Chinese roots that relocated abroad following Beijing’s industry crackdown. However, Huobi HK’s repeated withdrawals add uncertainty to the company’s future in the region.