Hong Kong Regulators' Crackdown Drives Unlicensed Crypto Exchanges out of the Market
CryptoNewsTerminal Staff31 May, 2024
Hong Kong Regulators' Crackdown Drives Unlicensed Crypto Exchanges out of the Market
The Hong Kong Securities and Futures Commission's (SFC) efforts to regulate the cryptocurrency industry have led to the withdrawal of six major unlicensed exchanges from the local market. This includes industry giants OKX and HTX (formerly Huobi), according to a report by Cointelegraph. In February, the SFC set a deadline for unlicensed crypto exchanges to either apply for a Virtual Asset Service Provider (VASP) license or cease operations. While 22 exchanges initially submitted applications, six, including OKX and Huobi, have since withdrawn their requests. As of June 30, 18 exchanges are reportedly still pursuing licenses to operate in Hong Kong. The SFC is expected to publish a list of locally licensed exchanges on June 1. This regulatory crackdown is part of a broader effort by the SFC to protect investors and bring the cryptocurrency industry under its purview. The move aligns with the increasing global trend toward regulating digital assets.
