Gate.io arm shelves HK crypto license application amid regulatory hurdles

Photo credit: Gate.io

Gate.HK, a unit of crypto exchange Gate.io, has pulled back its application for a virtual asset trading platform license in Hong Kong. It’s now the third firm tied to a global exchange to back out from the market’s rigorous regulations, the South China Morning Post reported.

Consequently, Gate.HK has paused new user registrations, deposits, and promotions in Hong Kong. Users were advised to withdraw assets by August 28 as it has to stop operations by May 28 due to local rules.

The company said that the application withdrawal is a “proactive step” as part of its “platform overhaul.”

Kevin Lee, the firm’s CEO, said in a statement that Gate.HK is open to pursuing other licenses to continue operating in the city.

As part of Hong Kong’s new rules governing crypto exchanges, the Securities and Futures Commission requires companies to wrap up their business within three months if they fail to secure approval for operations. This is part of the agency’s intensive compliance regime that went live in June last year.

Eight companies have withdrawn their applications from Hong Kong’s licensing process. This includes HKVAEX, which is backed by Binance, and HBGL Hong Kong, an affiliate of HTX (previously Huobi Global).

Still, 20 firms – including OKX, Crypto.com, and Bybit – remain in the running for a license. Retail investors in the city can currently use two licensed exchanges: HashKey and OSL.

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