According to a report from the South China Morning Post, the cryptocurrency exchange Huobi (HTX) has withdrawn its application for a virtual asset service provider (VASP) license submitted to the Hong Kong Securities and Futures Commission.
Reportedly, Huobi’s entity in Hong Kong, Huobi Global Limited (HBGL Hong Kong Limited), initially submitted the application for a VASP license last week but withdrew it three days later on February 23.
The Hong Kong Securities and Futures Commission had previously set a one-year transition period for the licensing of VASPs, which is about to expire. All Hong Kong virtual asset service providers must submit their license applications before February 29 this year. Cryptocurrency exchanges that fail to submit their license applications by February 29 must cease operations in Hong Kong by May 31. In other words, Huobi Hong Kong’s withdrawal of the application may force it to operate overseas or underground.
Many global exchanges have applied for such licenses in Hong Kong. So far, the regulatory authority in Hong Kong has issued VASP licenses to two platforms, HashKey and OSL. According to its website, the financial regulator is reviewing applications from 19 cryptocurrency companies, including exchanges such as OKX, Bybit, Bullish, and Crypto.com. Additionally, it is reported that HKVAEX, a cryptocurrency exchange associated with Binance, also submitted a similar license application on January 4.
