HTX Re-Applies for Hong Kong Virtual Asset Trading License Days After Withdrawal
In Brief
HTX, formerly Huobi, has re-submitted its virtual asset trading license application for Hong Kong market on February 26th, post withdrawal.
Cryptocurrency exchange HTX, previously known as Huobi, today re-submitted an application for regulatory approval to operate within the Hong Kong market.
The application, addressed to the Securities and Futures Commission (SFC), pertains to the establishment of a virtual asset trading platform (VATP) under its local subsidiary, Huobi HK, managed by HBGL Hong Kong Limited. This move aligns with the regulatory framework introduced by local authorities in late 2022, marking Huobi as the latest entity within the cryptocurrency sector to pursue a VATP license in Hong Kong.
This turned out a bit surprising for many analysts as yesterday, HTX decided to withdraw its application for a virtual asset trading license. The move, confirmed by the Securities and Futures Commission (SFC) on February 23, comes just three days after the initial submission of the application.
The decision marked a shift in direction for the company, especially considering earlier predictions by Justin Sun, who had suggested the potential for HTX to secure a crypto trading license in Hong Kong within 6 to 12 months. However, with the recent withdrawal, the company has chosen to reassess its approach in the region. Despite this significant development, HTX has refrained from providing an official statement regarding the rationale behind its decision.
This move by HTX follows closely on the heels of another significant decision made by its subsidiary, Huobi Korea. On January 29, 2024, Huobi Korea announced the termination of its virtual asset trading services in South Korea. The decision was attributed to a combination of factors, including regulatory changes, market volatility, and shifts in investor behavior. The company conducted a comprehensive analysis of these factors before arriving at the difficult decision to cease its trading activities in South Korea.
Potential Reasons Behind HTX’s Earlier License Withdrawal
The withdrawal of HTX’s application for a crypto trading license in Hong Kong has sparked reflections on the company’s future strategies and its ability to navigate regulatory environments effectively. The decision underscores the challenges faced by cryptocurrency exchanges in adapting to evolving regulatory landscapes globally. As the industry continues to evolve, it remains to be seen how companies like HTX will adjust their strategies to address these changing dynamics.
Speculation has arisen regarding the potential reasons behind HTX’s sudden withdrawal of its license application. One possibility is that Justin Sun, the founder of HTX, might be reallocating resources and focus towards restructuring Tron, another project under his purview.
The complexities and challenges in the cryptocurrency space, particularly concerning regulatory compliance and market stability, may have prompted Sun to prioritize efforts to rebuild trust and enhance the reputation of his projects amidst concerns related to security and operational risks.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
