Gate.io affiliate withdraws license application in Hong Kong, winds down local services
Quick Take
- The crypto exchange has withdrawn its crypto trading platform license application with the local regulator.
- The platform urged users to withdraw their assets by August 28, saying that it plans to delist all tokens on May 28 to adhere to local rules.
Gate.HK, crypto exchange Gate.io’s Hong Kong entity, is winding down operations and has withdrawn its crypto trading platform license application in the region.
The company said in a statement on Wednesday that it will carry out a “major overhaul” of its current platform and urged users to withdraw their assets by August 28.
Gate.HK said that it will stop new user registration and deposit immediately, and plans to delist all tokens — including bitcoin, ether, bitcoin cash, litecoin, solana, polkadot, polygon, uniswap and USDT — on May 28.
“Gate.HK is actively working on the aforementioned overhaul,” the company said in the statement. “We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”
The trading platform, which officially launched in May 2023, submitted its virtual asset trading platform application with the Hong Kong Securities and Futures Commission in February this year, but withdrew the application on May 22, according to the SFC’s website.
The SFC did not disclose the reason behind the application withdrawal. Gate.io did not immediately respond to The Block’s request for comment.
The SFC stipulates that crypto trading platforms that fail to submit their license applications by Feb. 29 must close down their businesses in Hong Kong by May 31 or within three months of further notification.
Many global exchanges have applied for such retail trading licenses. The SFC is officially reviewing applications from 20 crypto firms, including OKX, Bybit, Bullish and Crypto.com, according to its website.
HKVAEX, a crypto platform reportedly linked to Binance, announced last month that it was shutting down after withdrawing its license application on March 28. The platform officially closed on May 1.
Huobi HK, HTX’s Hong Kong affiliate, withdrew its license application for the second time last week, adding uncertainty about whether the exchange can legally operate in the region.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
