Hong Kong-based cryptocurrency exchange HTX, previously known as Huobi Global, has withdrawn its application for a license, as revealed in a filing on the Securities and Futures Commission website dated February 23.
HTX, headquartered in Seychelles and backed by entrepreneur Justin Sun, did not disclose the reason for its withdrawal. A spokesperson for HTX was not available for comment at the time of publication.
The Securities and Futures Commission website maintains a list of virtual asset trading platforms and their regulatory statuses in Hong Kong, including those whose license applications have been returned, refused, or withdrawn.
Tough Times for HTX
HTX and its sister exchange Poloniex have faced challenges, including security breaches. In early November, Poloniex suffered a $125 million loss from its hot wallet due to a hacker’s exploit, affecting over 175 different tokens.
Despite the losses, Sun assured users that deposits on HTX and Poloniex were secure, with the platforms’ revenue covering the losses. Sun confirmed to CoinDesk that both platforms had recovered from the hack and resumed user withdrawals for the majority of their assets.
Sun had previously expressed confidence that HTX would obtain a Hong Kong crypto trading license within the next 6 to 12 months, but the recent withdrawal of the application indicates a shift in plans.
In January, the Singapore-based cryptocurrency exchange made a bid for a license to operate in Hong Kong, applying to the Hong Kong SFC on February 9th to operate as a virtual asset trading platform (VATP).
