HTX, the parent company of Huobi Global (HGBL) Hong Kong Limited, has once again withdrawn its application for a cryptocurrency trading license from Hong Kong’s Securities and Futures Commission (SFC). This is the second time that Huobi HK has pulled its application, raising concerns about the company’s future in the region.
The decision to withdraw the application came just two months after Huobi HK had resubmitted it on February 26, following an initial withdrawal three days prior. The SFC’s website no longer lists Huobi HK as one of the virtual asset trading platform applicants, indicating that the application has been withdrawn.
Hong Kong had set a regulatory deadline requiring crypto exchanges to obtain a license or cease operations in the region by the end of May if they failed to apply by February 29. Despite actively fostering its reputation as a crypto hub, with licensed exchanges offering retail trading services, only two platforms, HashKey and OSL, have secured licenses so far. The SFC has also issued warnings against websites falsely claiming to be regulated exchanges.
According to the SFC’s website, several major global crypto exchanges, including OKX, Bybit, Bullish, and Crypto.com, are still undergoing the licensing process. The SFC is currently reviewing 20 such applications. The repeated withdrawals by Huobi HK and the lack of explanation from the SFC have raised doubts about the company’s ability to operate successfully in Hong Kong.
This withdrawal by Huobi HK is similar to a move made by crypto platform HKVAEX, which ceased operations on May 1 after withdrawing its license bid in March. HKVAEX was reportedly linked to Binance.
The withdrawal of Huobi HK’s HTX Hong Kong License application is a setback for Huobi Global (HTX), one of the top five global crypto exchanges by 24-hour trading volume. In early 2023, HTX announced plans to launch a new Hong Kong-based exchange, Huobi Hong Kong, to comply with the city’s updated crypto regulations. However, an HTX representative clarified in February 2024 that Huobi HK operates independently from its parent company.
Huobi HK’s resubmission in late February was an attempt to avoid shutting down operations on June 1, as required by the new virtual asset regulatory regime implemented in 2022. While only a few international crypto companies met the application deadline, the Hong Kong market was seen as an attractive location for firms with Chinese roots that relocated abroad following Beijing’s crackdown on the industry.
