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Cryptocurrency Exchange Gate.HK Faces Regulatory Pressure

Hong Kong-based cryptocurrency exchange Gate.HK has closed down due to non-compliance with local licensing requirements, which will take effect on June 1.

Cryptocurrency Exchange Gate.HK Faces Regulatory Pressure

The Securities and Futures Commission of Hong Kong (HKSFC) has ordered all crypto exchanges operating in the region to obtain an operating license. Those platforms that have not applied for the mentioned license must stop the process of their activity by May 31. Gate.HK submitted the relevant application back in February but withdrew it on May 22. The reason for this decision was the need for a major overhaul of the trading platform.

From May 23, Gate.HK has stopped all activities related to acquiring new users and marketing. Existing customers are no longer able to make deposits. At the same time, they were allowed to withdraw funds until August 28.

Gate.HK announced that its trading platform will be permanently disabled on May 28. After that, all tokens will be removed from the list. The corresponding list, among others, includes Bitcoin, Ether, Solana, Polygon, and Tether.

It is worth noting that in the future, the mentioned crypto exchange intends to resume providing services. The relevant activities will be restarted after the completion of the reconstruction process of the trading platform owned by Gate.HK, following the regulatory requirements in force in Hong Kong. It is known that the specified norms include measures to combat the financing of terrorist activities. Also, the requirements of the Hong Kong regulator provide for the need to introduce mechanisms to counteract transactions committed for money laundering.

Gate.HK has officially announced the ongoing efforts to improve its functional system. The crypto exchange also stated its intention to contribute to the ecosystem of virtual assets.

As we have reported earlier, Worldcoin to Stop Iris-Scanning Operations in Hong Kong.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.