Gate.HK Crypto Exchange Closes its Doors in Hong Kong
Hong Kong-based crypto exchange platform Gate.HK has shut down after failing to obtain the necessary license ahead of the new regulations imposed by the SFC.
The platform has ceased all deposit operations and is limiting its users to fund withdrawals until August 28, planning a major overhaul to comply with the regulations.
Binance, OKX, Kraken, and many other exchanges are in the same situation and are ending their services in Hong Kong.
OKX and Gate.HK crypto exchange platforms have announced their closure in Hong Kong after failing to meet the local licensing requirements that will come into effect on June 1.
This decision follows the new regulation from the Securities and Futures Commission (SFC) in Hong Kong, requiring all crypto exchanges in the region to obtain an operational license. Exchanges that have not submitted their license application before May 31 must cease operations.
Withdrawal of License Application and Ceasing Operations
Gate.HK initially submitted its license application to the SFC on February 28. However, the platform withdrew its application on May 22, citing the need for a complete review of its trading system.
Since May 23, Gate.HK has ceased all activity related to acquiring new users and marketing. Existing users can no longer make deposits and are limited to fund withdrawals only until August 28.
Planning a Revamp to Comply with Regulations
Gate.HK plans to relaunch its services after a complete reconstruction of its platform to comply with regulatory requirements in Hong Kong. These requirements include implementing measures to combat money laundering and terrorist financing.
The platform has expressed its intention to resume operations in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the necessary licenses.
Regulatory Context in Hong Kong and Impact on Other Exchanges
This news comes one day before another major crypto exchange platform, OKX, also announced its departure from Hong Kong on May 24. OKX will cease providing centralized virtual asset trading services to residents of Hong Kong by May 31, 2024.
Prior to Gate.HK’s announcement, three other exchanges – Huobi HK, QuanXLab, and IBTCEX – had also withdrawn their license applications in May.
