Battlefield Retreat? Hong Kong Entity Withdraws VASP License Application Three Days After Submission

According to a report by the South China Morning Post, the cryptocurrency exchange Huobi (HTX) has withdrawn its virtual asset service provider (VASP) license application submitted to the Securities and Futures Commission (SFC) of Hong Kong.

Reportedly, the physical entity of Huobi Exchange in Hong Kong, Huobi Global Limited (HBGL Hong Kong Limited), initially submitted the VASP license application last week but later withdrew the application on February 23, three days after submission.

Due to the previous regulation by the SFC, there is a one-year transitional period for the issuance of VASP licenses. This deadline is about to end, and all virtual asset service providers in Hong Kong must submit their applications before February 29 this year. Cryptocurrency trading platforms that fail to submit their license applications by February 29 must close their operations in Hong Kong by May 31. In other words, the withdrawal of the application by Huobi Hong Kong may force it to operate overseas or underground.

Many global exchanges have applied for such licenses in Hong Kong. So far, the regulatory authority in Hong Kong has issued VASP licenses to two platforms, HashKey and OSL. According to its website, the financial regulatory agency has formally reviewed applications from 19 cryptocurrency companies, including trading platforms such as OKX, Bybit, Bullish, and Crypto.com. Additionally, it is alleged that HKVAEX, a cryptocurrency exchange associated with Binance, also submitted a similar license application on January 4.

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