HTX Pulls Out of Hong Kong Crypto License Application: What is the Issue?

HTX (previously known as Huobi Global), a cryptocurrency trading platform, has withdrawn its application for a license in Hong Kong, deviating from its initial plan to strengthen its presence in the local crypto market. The Securities and Futures Commission (SFC) confirmed the withdrawal just three days after the application was submitted on February 23rd. HTX, which was once considered a frontrunner for regulatory approval, has left the crypto community speculating about the reasons behind this unexpected retreat.

Months ago, HTX’s advisor Justin Sun hinted at the company’s consideration of obtaining a license in Hong Kong, sparking interest and anticipation in the market. The belief was that this strategic move would solidify Huobi’s position in the promising crypto market of Hong Kong.

However, despite Hong Kong implementing strict regulations last year and placing demands on crypto-related companies, HTX’s withdrawal just before the deadline highlights the challenges and regulatory hurdles faced by crypto businesses in the region. This decision sheds light on the conformity pressures and regulatory obstacles present in the industry.

Although the Hong Kong market holds appeal due to its proximity to mainland China and its status as a global financial hub, international crypto companies like HTX face unique challenges. This surprising move emphasizes the need for well-defined and executed rules to support virtual assets, not only in Hong Kong but globally.

Tags: Crypto Regulations