Gate HK to Wind Down Operations, Withdraws Crypto Trading License Application in Hong Kong

Gate HK to Wind Down Operations, Withdraws Crypto Trading License Application in Hong Kong

Gate.HK, the Hong Kong entity of crypto exchange Gate.io, is winding down its operations and has retracted its application for a crypto trading platform license in the region.

In a statement released on Wednesday, the company announced it would undertake a “major overhaul” of its current platform and urged users to withdraw their assets by August 28.

Effective immediately, Gate.HK will halt new user registrations and deposits and plans to delist all tokens — including Bitcoin, Ether, Bitcoin Cash, Litecoin, Solana, Polkadot, Polygon, Uniswap, and USDT — on May 28.

“Gate.HK is actively working on the aforementioned overhaul,” the company stated. “We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”

The trading platform, which officially launched in May 2023, submitted its virtual asset trading platform application to the Hong Kong Securities and Futures Commission (SFC) in February this year but withdrew the application on May 22, according to the SFC’s website.

The SFC did not disclose the reason for the withdrawal. Gate.io did not immediately respond to The Block’s request for comment.

The SFC requires crypto trading platforms that fail to submit their license applications by February 29 to cease operations in Hong Kong by May 31 or within three months of further notification.

Many global exchanges have applied for such retail trading licenses. The SFC is currently reviewing applications from 20 crypto firms, including OKX, Bybit, Bullish, and Crypto.com, according to its website.

HKVAEX, a crypto platform reportedly associated with Binance, announced last month that it was shutting down after withdrawing its license application on March 28. The platform officially closed on May 1.

Huobi HK, HTX’s Hong Kong affiliate, withdrew its license application for the second time last week, adding uncertainty about whether the exchange can legally operate in the region.