Gate.HK, a crypto exchange based in Hong Kong and a subsidiary of Gate.io, is making significant changes to its operations. The company has decided to cease operations and has withdrawn its application for a license to operate a crypto trading platform in the region. In an announcement on Wednesday, Gate.HK revealed plans for a major overhaul of its current platform and requested that users withdraw their funds by August 28. Additionally, Gate.HK will delist all tokens on May 28 and has already stopped new user registration and deposits.
Gate.HK had applied to the Hong Kong Securities and Futures Commission (SFC) for a virtual asset trading platform in February of this year. However, on May 22, the company withdrew its application, as reported on the SFC website. The SFC has not provided any details regarding the reason for the withdrawal. It is worth noting that crypto trading platforms in Hong Kong that do not apply for a license by February 29th are required to shut down their operations within three months of receiving additional notice, or by May 31st.
Gate.HK’s decision to withdraw its application comes at a time when several international exchanges are seeking the same retail trading license. Approximately 20 cryptocurrency companies, including Crypto.com, OKX, Bullish, and Bybit, are reportedly having their applications reviewed by the SFC.
This announcement follows the recent closure of HKVAEX, a cryptocurrency exchange allegedly associated with Binance. HKVAEX withdrew its licensing application on March 28 and officially closed its platform on May 1.
In other news, there are discussions about whether Bitcoin will reach $73,000 by the end of 2024. The future of the cryptocurrency market remains uncertain, and experts have varying opinions on its potential price movements.
Overall, Gate.HK’s decision to cease operations and withdraw its license application marks a significant development in the crypto exchange industry in Hong Kong. The SFC’s review of other applications from international exchanges will be closely watched by industry participants.