HTX Pulls Out Hong Kong License Application: A Crypto Strategy Pivot?

The cryptocurrency trading platform, HTX, formerly known as Huobi Global, has recently made a surprising move by withdrawing its license to operate in Hong Kong. This decision represents a significant shift from its previous plans to expand its presence in the local crypto market.

According to the Securities and Futures Commission (SFC), the withdrawal of the license application was made by HBGL Hong Kong Limited, a subsidiary of HTX, just three days after it was submitted on February 23rd.
The reason behind this withdrawal has left the crypto community skeptical, as HTX was considered one of the frontrunners in obtaining regulatory approval in Hong Kong. The sudden reversal of its intentions, without any explanation provided to the public, has led industry experts to speculate about the factors that contributed to the cancellation.
A few months ago, HTX’s advisor, Justin Sun, mentioned on Twitter that the company was considering applying for a license in Hong Kong, generating a lot of excitement in the industry. It was expected that Huobi’s establishment in Hong Kong would allow it to tap into the thriving local crypto market in the long term.
However, the new regulatory regime for virtual assets implemented in Hong Kong last year has presented significant challenges for companies involved in selling or marketing cryptocurrencies to local residents. The withdrawal of the license application just days before the deadline emphasizes the difficulties and regulatory obstacles faced by cryptocurrency businesses in Hong Kong.
Despite the attractiveness of the Hong Kong market, with its proximity to mainland China and its status as a global financial hub, international crypto companies have struggled to navigate its complexities. HTX’s surprising decision highlights the complexities of the regulatory systems that cryptocurrency firms face on an international level. It also underscores the need for more established and enforced rules to support virtual assets in Hong Kong and other parts of the world.
Tags: Crypto Regulations