Subsidiaries of two major global exchanges, Gate.io and OKX, have withdrawn their applications for an operational license in Hong Kong over the past two days.

This move is part of a broader trend, with eight firms, including those backed by Binance and HTX, also abandoning their licensing efforts, according to the Securities and Futures Commission (SFC) website. The SFC is still reviewing applications from other exchanges, such as Crypto.com, Bullish, and Matrixport, but has so far only approved licenses for two exchanges in the region, OSL and HashKey.

OKX announced on May 24 that it would withdraw its application for a Virtual Asset Service Provider (VASP) license. The exchange will stop providing centralized virtual asset trading services to Hong Kong residents by May 31, 2024. Customer funds will remain safe, and withdrawal services will not be affected. OKX advised customers to avoid deposits after May 31 and set an August 31 deadline for asset withdrawals.

Similarly, Gate.io’s Hong Kong unit announced on May 23 that it had withdrawn its application for a virtual asset trading platform license. The decision is part of a comprehensive platform overhaul strategy that includes halting new user registrations, deposits, and marketing activities in Hong Kong. The platform plans to delist all major tokens and will cease all trading services by May 28, advising users to withdraw their assets by August 28.

Gate.HK, launched in 2023, had submitted its license application in February to comply with new regulations requiring exchanges serving Hong Kong customers to obtain an operational license.