Huobi HK (HB) Cancels VATP License Application Again: Unraveling the Impact on Crypto Market

• Huobi HK, a subsidiary of HTX, has reportedly withdrawn its application for a virtual asset trading platform license from the Hong Kong Securities and Futures Commission (SFC) for the second time.
• The platform initially submitted the application on February 20, withdrew it three days later, resubmitted it on February 26, and then withdrew it again on May 14.
• This has sparked concerns about Huobi HK’s readiness to operate in Hong Kong and speculation about its future.

Huobi HK, a subsidiary of HTX, has withdrawn its application for a virtual asset trading platform license from the SFC for the second time, raising questions about the company’s preparedness to provide services in Hong Kong.

Huobi HK Withdraws License Application Again

Huobi HK initially submitted an application for the license on February 20 but withdrew it after three days. The platform resubmitted the application on February 26, only to withdraw it again on May 14. This repeated pattern of application and withdrawal has raised concerns within the crypto community about the company’s readiness to provide services in Hong Kong. It has also sparked speculation about Huobi HK’s future and its potential challenges in operating within the city.

Other Platforms Also Withdraw Applications

Besides Huobi HK, other platforms such as Ammbr, BitHarbour, HKVAEX, IBTCEX, and QuanXLab have also withdrawn their VATP license applications. Earlier on February 7, 2024, Meex Digital Securities Limited’s Meex application was returned and the platform was removed from the list. Ammbr was removed from the SFC’s VATP applicants list in 2023, while all other platforms were removed in 2024. Though Huobi HK marks the most recent withdrawal, QuanXLab and IBTCEX withdrew their applications on May 13.

SFC Announces Closure of Unlicensed Crypto Companies

In related news, the SFC announced the closure of unlicensed crypto companies by the end of May 2024. The regulator received license applications from 22 firms, including Huobi, before the deadline. However, major players like Binance, Kraken, and Coinbase failed to submit their applications.

Conclusion

The repeated withdrawal of Huobi HK’s license application raises questions about the company’s readiness to operate in Hong Kong. The withdrawals, along with the SFC’s announcement of the closure of unlicensed crypto companies, highlight the regulatory challenges facing crypto platforms in Hong Kong. It remains to be seen how these developments will impact the city’s crypto landscape.