Gate.HK Withdraws License Application and Halts Operations in Hong Kong

• Gate.HK withdraws crypto platform licence application in Hong Kong, urges asset withdrawal by August 28, 2024.
• Delisting all tokens, including Litecoin and Uniswap, by May 28, 2024, in compliance with local regulations.
• HKVAEX and Huobi HK also withdrew licence applications amid regulatory uncertainties

The Hong Kong branch of cryptocurrency exchange Gate.io, Gate.HK, has said that it is withdrawing its application for a licence to operate a crypto trading platform. The business will sever its ties and completely revamp its platform.

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Gate.HK urged users to withdraw their assets by August 28, 2024, as part of this transition. The website will also instantly stop accepting new users and deposits. Furthermore, by May 28, 2024, it intends to delist every token, including  Bitcoin, Ethereum, Litecoin, Solana, Polkadot, Polygon, Uniswap, and USDT. 

Regulatory Compliance

The trading platform initially submitted its application for a virtual asset trading platform licence to the Hong Kong Securities and Futures Commission in February of this year. However, it retracted the application yesterday, May 22, as per the SFC’s website records.

Gate.HK further stated, “We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licences.” The company is actively working on restructuring its platform to comply with future regulatory requirements.

Market Impact and Industry Trends

The withdrawal of Gate.HK’s licence application follows a pattern seen with other crypto exchanges in Hong Kong. For instance, HKVAEX, a platform linked to Binance, shut down after withdrawing its licence application in May 2024. 

Similarly, Huobi HK, another major player, withdrew its licence application for the second time last week, raising concerns about its legal operations in the region. 

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