HTX, the crypto exchange formerly known as Huobi, has recently resubmitted its application for a Virtual Asset Trading Platform (VATP) license in Hong Kong. This decision comes after the exchange withdrew its initial application, which was filed through its Hong Kong subsidiary Huobi HK on Feb. 20. The withdrawal, which occurred on Feb. 23 without explanation, raised questions and concerns within the crypto community. However, the latest update on the Securities and Futures Commission (SFC) website indicates that HTX has recommenced the application process on Feb. 26, potentially signaling a renewed effort to obtain the license.
Last year, Justin Sun, the prominent figure behind HTX, expressed confidence in Hong Kong regulators granting the exchange a license due to its strong position in the Asian market. This belief in regulatory approval likely influenced the decision to resubmit the application despite the initial setback. However, HTX has yet to provide a formal response to inquiries from industry sources, including CryptoSlate, regarding the recent developments. The lack of communication raises questions about the exchange’s transparency and willingness to engage with stakeholders and the public during crucial regulatory processes.
Regulatory Deadline and Compliance
In light of the recent developments, Hong Kong’s SFC has intensified its warnings to unregistered crypto platforms operating in the region. The regulator issued a deadline for unregistered platforms to either submit their license applications by Feb. 29 or cease operations by May 31. Failure to comply with these requirements could result in forced closures and financial penalties. The SFC’s emphasis on compliance underscores the importance of regulatory adherence and transparency within the crypto industry.
The SFC’s efforts to streamline the licensing process for virtual asset trading platforms reflect its commitment to promoting a secure and compliant trading environment in Hong Kong. With the influx of new applications, including submissions from major players like HTX, Bullish, and Crypto.com, the regulatory landscape is evolving rapidly. However, despite the growing number of applicants, only a few exchanges, such as OSL and Hashkey, have received licenses to operate in Hong Kong. This disparity highlights the rigorous standards set by the SFC and the challenges faced by aspiring exchange operators in the region.
As HTX navigates the complex regulatory landscape in Hong Kong, its decision to resubmit the VATP license application demonstrates a commitment to compliance and market integrity. The exchange’s interactions with regulators, stakeholders, and the public will be closely monitored in the coming months as the licensing process unfolds. The evolving regulatory framework in Hong Kong underscores the importance of transparency, accountability, and regulatory cooperation within the crypto industry.
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