HTX Resubmits Application for Virtual Asset Trading License in Hong Kong Just Days After Withdrawal
In Brief
HTX, which was previously known as Huobi, has officially re-applied for authorization to engage in virtual asset trading in Hong Kong as of February 26, following a previous withdrawal.
The cryptocurrency exchange HTX, formerly known as Huobi, has today re-submitted its request for regulatory permission to operate within the Hong Kong market.
This application has been directed to the Securities and Futures Commission (SFC) and concerns the launch of a virtual asset trading platform (VATP) under its local subsidiary, Huobi HK, which is managed by HBGL Hong Kong Limited. This initiative is in line with the regulatory framework introduced by local authorities at the end of 2022, making Huobi the latest player in the crypto market to seek a VATP license in Hong Kong.
This development has caught many analysts off guard since just yesterday, HTX opted to pull its application for a virtual asset trading license. The withdrawal was officially confirmed by the Securities and Futures Commission (SFC) on February 23, a mere three days after the initial filing.
This decision represents a notable change for the firm, especially in light of earlier comments made by Justin Sun, who predicted it could take HTX anywhere from 6 to 12 months to achieve a crypto trading license in Hong Kong. Given these recent events, the company has decided to reevaluate its strategy in this region. Nevertheless, HTX has not publicly explained its reasoning behind this significant shift. withdrawal This recent action by HTX closely follows a critical announcement from its subsidiary, Huobi Korea. On January 29, 2024, Huobi Korea disclosed that it would be halting its virtual asset trading services in South Korea. This decision stemmed from a mix of factors, including new regulatory measures, fluctuations in the market, and changes in investor behavior. The company undertook an in-depth analysis of these elements before opting to cease trading operations in Korea.
Examining the Potential Factors Behind HTX’s Initial License Withdrawal
The decision by HTX to retract its application for a trading license in Hong Kong has led to a wave of speculation regarding the company’s future strategies and its capacity to navigate complex regulatory environments. This incident emphasizes the hurdles exchanges face while trying to adapt to a rapidly changing regulatory landscape globally. As the industry continues to transform, it raises questions about how firms like HTX will maneuver their strategies to keep pace with these shifts.
There’s been a lot of conjecture surrounding the reasons for HTX's sudden withdrawal of its application. One possibility is that Justin Sun, the founder of HTX, is redirecting his focus and resources toward revamping Tron, another one of his ventures. cryptocurrency Given the intricate challenges within the cryptocurrency domain, particularly in relation to regulatory compliance and maintaining market stability, Sun may have decided to prioritize rebuilding trust and enhancing his projects’ reputations amid growing security concerns and operational risks.
Hong Kong Securities and Futures Commission
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