Gate.io Subsidiary Ceases Operations, Withdraws License Application in Hong Kong

• On May 28, Gate.HK intends to delist all tokens and it has stopped new user registration.
• The firm withdrew the application, as reported on the SFC website on May 22.

Crypto exchange Gate.HK, a Hong Kong subsidiary of Gate.io, is ceasing operations and has withdrawn its application for a license to operate a crypto trading platform in the region. On Wednesday, the business announced plans to do a “major overhaul” of its present platform and asked consumers to remove their funds by August 28. On May 28, Gate.HK intends to delist all tokens and it has already stopped new user registration and deposits.

The trading platform, which went live in May 2023, applied to the Hong Kong Securities and Futures Commission (SFC) for a virtual asset trading platform in February of this year, but on May 22, they withdrew the application, as reported on the SFC website.

Plans to Resume in Future

Moreover, the SFC remained tight-lipped on the rationale for the withdrawal of the application. Also, if crypto trading platforms do not apply for a license by February 29th, the SFC requires them to shut down their Hong Kong operations by May 31st, or three months after receiving additional notice.

The company stated:

“Gate.HK is actively working on the aforementioned overhaul. We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”

Furthermore, this kind of retail trading license has been sought after by several international exchanges. Around 20 cryptocurrency companies, including Crypto.com, OKX, Bullish, and Bybit, are reportedly having their applications reviewed by the SFC.

Last month, HKVAEX, a cryptocurrency exchange that was allegedly associated with Binance, declared its closure after withdrawing its licensing application on March 28. Moreover, May 1 was the official closing date of the platform.

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