Huobi Hong Kong Withdraws Licensing Application Again as Regulatory Crackdown Intensifies

After previously withdrawing its application for a virtual asset trading license in Hong Kong, the local subsidiary of cryptocurrency platform HTX has done so again, as reported by The South China Morning Post. The Securities and Futures Commission (SFC) of Hong Kong announced on its website that any platforms failing to submit an application by May 31 will be required to cease operations. The SFC did not disclose the reason behind the second withdrawal by Huobi Hong Kong, which is managed by HBGL Hong Kong Limited. Major crypto exchanges such as OKX, Crypto.com, and Bullish (which owns CoinDesk) are currently under review by the SFC. In June 2023, HTX founder Justin Sun predicted that Huobi Hong Kong would obtain a license within 6-12 months. According to a statement released by HTX, Huobi Hong Kong remains a distinct organization. This news comes amidst a crackdown on crypto activities in Hong Kong aimed at protecting investors during periods of volatile market conditions. The SFC’s move follows similar actions taken by other regulatory bodies worldwide.