Huobi Hong Kong Withdraws Virtual Asset Trading License Application

HTX’s Hong Kong-based subsidiary, Huobi Hong Kong, has once again retracted its application for a virtual asset trading license in the region, as per the Securities and Futures Commission’s announcement. The withdrawal was reported by the South China Morning Post.

Despite attempts to reach out for clarification, Huobi Hong Kong’s operator, HBGL Hong Kong Limited, remained unresponsive by press time. The Securities and Futures Commission has set a deadline of May 31 for platforms failing to submit license applications to cease operations, though reasons for the withdrawal were not disclosed.

Ongoing Regulatory Scrutiny

Several major crypto exchanges, including OKX, Crypto.com, and Bullish, are currently undergoing licensing reviews by the SFC. Notably, Bullish, the parent company of CoinDesk, is among those under review. This regulatory scrutiny follows a trend of increased oversight in the cryptocurrency sector.

In June 2023, Justin Sun of HTX had expressed confidence that Huobi Hong Kong would secure a license within 6-12 months. However, the recent withdrawal indicates challenges in meeting regulatory requirements. HTX reiterates that Huobi Hong Kong operates independently from the parent company.