Subsidiaries of two major global exchanges, Gate.io and OKX, have retracted their applications for operational licenses in Hong Kong within the past two days. This move is part of a larger trend, with eight firms, including those backed by Binance and HTX, also withdrawing their licensing efforts, according to the Securities and Futures Commission (SFC) website.

Despite this, the SFC continues to review applications from other crypto exchanges, such as Crypto.com, Bullish, and Matrixport. So far, only two exchanges, OSL and HashKey, have been granted licenses in the region.

OKX Withdrawal

On May 24, OKX HK, a Hong Kong-based crypto exchange, announced it was withdrawing its application for a Virtual Asset Service Provider (VASP) license. The exchange stated it would stop offering centralized virtual asset trading services to Hong Kong residents by May 31, 2024. Customer funds remain secure, and withdrawal services will not be affected. After this date, users will only be able to withdraw their funds, and OKX advised customers against making deposits post-May 31 as they may not be processed automatically. Users have until August 31 to withdraw their assets.

Gate.io Withdrawal

Similarly, on May 23, Gate.io's Hong Kong unit announced the withdrawal of its virtual asset trading platform license application. The firm cited a comprehensive platform overhaul strategy, which includes halting new user registrations, deposits, and marketing activities in Hong Kong. The platform will delist major tokens like Bitcoin, Polkadot, and Ethereum and will cease all trading services by May 28. Users are advised to withdraw their assets by August 28. Gate.HK, launched in 2023, had submitted its license application to the SFC in February to comply with new regulations requiring operational licenses for exchanges serving Hong Kong customers.