Hong Kong Regulators Crack Down: Unlicensed Crypto Exchanges Forced to Shut Down Amid Licence Deadline

Following regulatory crackdowns, Hong Kong's Securities and Futures Commission (SFC) has mandated that all unlicensed cryptocurrency exchanges cease operations immediately, emphasising the importance of a secure trading environment. Exchanges were given until Feb. 29 to apply for licences or face closure within three months. Despite 22 exchanges applying for licences, several, including OKX and Huobi HK, withdrew from the market in May, with Gate.HK citing the need for platform overhauls. Gate.HK ceased user acquisition, with trading discontinued on May 28 and delisting of tokens like Bitcoin, Ether, Solana, and Polygon. Gate.HK plans to resume operations post-overhaul. As of May 31, only HashKey and OSL Exchange have been approved by the SFC, while others await confirmation, with the possibility of closures for those not granted licences. Investors are advised to consult the official list of approved exchanges to mitigate risks.