HTX, previously known as Huobi and a significant player in the cryptocurrency exchange market, has recently withdrawn its application for a virtual asset trading license in Hong Kong. The Securities and Futures Commission (SFC) of Hong Kong disclosed this development on its website, noting the withdrawal occurred merely three days after the application was submitted.
Shift in Strategy
This move comes as a surprise, especially considering the optimistic outlook shared by Justin Sun last June. Sun had forecasted that HTX, at the time operating under the Huobi brand, would secure a Hong Kong crypto trading license within a span of 6 to 12 months. The abrupt withdrawal has left industry observers questioning the strategic direction and future plans of HTX within the Hong Kong market.
At the moment, HTX has not provided any comments or explanations regarding the decision to retract their license application. Inquiries made to HTX’s spokesperson have yet to receive a response, leaving the specifics of their decision and any potential next steps in the dark.
Reporting by Local Media
The news of HTX’s application withdrawal was first brought to light by the South China Morning Post, marking a notable development in the Hong Kong cryptocurrency landscape. This decision by HTX adds to the evolving narrative surrounding the regulation and operation of virtual asset exchanges in Hong Kong and the broader Asian financial markets.
HTX’s withdrawal from the licensing process may have broader implications for the cryptocurrency exchange industry in Hong Kong. It raises questions about the regulatory environment in the region and how it affects both local and international exchanges contemplating entry into this market. As the situation unfolds, the industry will be closely watching for any further updates from HTX or the SFC regarding virtual asset trading regulations and licensing in Hong Kong.
