Gate.io Pulls Plug on Hong Kong Venture, Abandons Trading License Application

2024-05-23 01:15:47

Shalini Nagarajan

Last updated:

May 23, 2024 05:15 EDT | 1 min read

Hong Kong License Gate.io’s Hong Kong entity, Gate.HK, is winding down its operations. It has also withdrawn its application for a crypto trading platform license in the region.

In a statement released Wednesday, Gate.HK outlined a platform overhaul and urged users to withdraw their assets by August 28.

The platform said it will no longer accept new users or deposits, and plans to delist all cryptocurrencies by May 28. “We will be undergoing a major overhaul of our current platform, along with potential development of new services and products in the near future,” Gate.HK said. The platform added that it may resume regional operations at some other point.

Unlicensed Exchanges Face Hong Kong Exit after May 31

Hong Kong’s Securities and Futures Commission (SFC) plans to only allow licensed crypto exchanges to service customers from June 1.

After closing the application portal in February, the SFC has mandated a strict deadline of May 31 for non-compliant exchanges to shut down. Next, the SFC will reveal which platforms have secured licenses through a public register on June 1.

Major Players Apply, But Exits Raise Concerns

Major digital asset platforms, including Crypto.com, OKX, HKVAX, and Bullish, are stepping up to meet Hong Kong’s new cryptocurrency licensing requirements. These checks will require risk profiling, insurance, asset custody measures, and even limit the types of tokens allowed for trading.

Gate.HK submitted an application for a license with the SFC in Feb. 2024. However, it withdrew the application on May 22. Neither Gate.io nor the SFC have publicly disclosed the reason behind this withdrawal.

Huobi HK, the Hong Kong subsidiary of HTX, also withdrew its application for a crypto trading license for the second time, raising concerns about its ability to operate legally in the region.

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