Quick Take:
•HTX’s affiliate, once known as Huobi Global, prepares to exit the Hong Kong scene following a second withdrawal of its crypto license application.
•The dance with regulations proves too complex, leading to a decisive curtain call in August.
Yello ParadiseSquad! Imagine trying to waltz gracefully but stepping on your partner’s toes not once but twice—that’s pretty much the scenario for HTX in Hong Kong. Originally stepping onto the regulatory dance floor as HBGL (Huobi HK), the crypto exchange first threw its hat into the licensing ring on February 20, 2024, only to promptly pick it up again three days later. After tweaking their moves to better align with Hong Kong’s choreography, they took another spin at the application but have now decided the dance isn’t for them, withdrawing once more.
From Debut to Departure
This back-and-forth has left HBGL with little choice but to plan its departure from the Hong Kong market, set for a grand finale in August. The Securities and Futures Commission (SFC), akin to a stern dance judge, has officially scratched HBGL off the list of contenders as of May 14. Now, with no regulatory partner to lean on, HBGL must clear the floor—exiting stage left by the mandated deadline.
Why the Exit?
While HBGL hasn’t spilled the beans on why they’ve decided to duck out, it’s clear that playing in the unregulated sandbox isn’t an option under the SFC’s watchful eyes. The new crypto regime in Hong Kong isn’t just a suggestion; it’s a strict set of steps that exchanges must follow if they want to waltz with retail customers legally.
The Bigger Picture in Hong Kong
Hong Kong’s crypto scene isn’t just losing HTX; it’s a complex ballet of regulations and requirements. The region introduced a shiny new crypto regime requiring exchanges to secure an SFC license if they fancy servicing the retail crowd. For HTX, unfortunately, it seems the regulatory routine was a bit too rigid to follow.
Who’s Still in the Game?
While HTX is bowing out, others are still waiting in the wings. Companies like HashKey Exchange have gracefully secured their spot, becoming the debut starlets back in August 2023 to offer crypto services to retail aficionados in Hong Kong. Others, like OSL Digital Securities and Hash Blockchain Limited, have also snagged those coveted crypto licenses.
Final Curtain Call
As HTX prepares to take its final bow in Hong Kong, the episode serves as a reminder of the intricate pas de deux between crypto enterprises and regulatory bodies. It’s a world where timing is everything, and even a well-intentioned step can end in a misstep. For the crypto community in Hong Kong, it’s about finding a rhythm that resonates with both the regulators and the market—a dance that continues to evolve with each beat of the regulatory drum.
