Ethereum
Here’s why Binance and OKX withdrew their Hong Kong license applications
Hong Kong’s ambitions to become the most sought-after destination for Web3 and crypto appear to be taking a back seat as some of the world’s largest exchanges have withdrawn their license applications from Hong Kong’s Securities and Futures Commission (SFC). .
Global stock markets withdraw from Hong Kong
According to local news report, some of the world’s largest exchanges like Binance, Huobi, and OKX decided to withdraw their applications in the last week of May. A total of 11 exchanges withdrew their applications, leaving only 11 candidates on the list.
THE Hong Kong SFC requires all applicants for a virtual asset trading platform license to sign a letter of commitment, ensuring that they do not have mainland Chinese users in any region. This requirement poses a significant challenge for traditional offshore exchanges. OKX attempted to form an industry alliance to challenge this stipulation, but was unsuccessful.
Some industry insiders noted that the removed entity may revise its entity or legal framework and reapply in the future. However, it should not use a brand similar to that of offshore exchanges in its application.
Are Hong Kong’s Web3 ambitions over?
With OKX leaves Hong Kongmany in the crypto community have started to wonder if Hong Kong’s Web3 ambitions are over.
Several individuals in Hong Kong’s WeChat circles have accused authorities of timidity and excessive caution in implementing the new system. They argue that the authorities’ conservative, risk-averse approach, rooted in traditional financial thinking, has weakened the competitiveness and flexibility of licensing. As a result, some operators decided to withdraw their applications at the final stage, despite significant upfront resources and costs.
The author noted several areas of concern regarding the new licensing system. First, various policies and measures related to the development of Hong Kong’s virtual asset market, such as VATP, issuance of stablecoins and over-the-counter exchanges of virtual assets, were designed by different departments without strategic considerations. coherent for industrial development.
These policies entered the consultation phase or legislative process at different times, leading to the gradual completion of the entire Web3 layout. This prolonged process has struggled to keep pace with rapidly changing technology.