Gate.HK, the Hong Kong entity of cryptocurrency exchange Gate.io, has announced the cessation of its operations and the withdrawal of its crypto trading platform license application in the region. In a statement released on Wednesday, the company revealed plans for a “major overhaul” of its platform and urged users to withdraw their assets by August 28.

Effective immediately, Gate.HK will halt new user registrations and deposits. The platform plans to delist all tokens, including major cryptocurrencies such as Bitcoin, Ether, Bitcoin Cash, Litecoin, Solana, Polkadot, Polygon, Uniswap, and USDT, by May 28.

“Gate.HK is actively working on the aforementioned overhaul,” the company stated. “We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”

Gate.HK, which officially launched in May 2023, had submitted its virtual asset trading platform application to the Hong Kong Securities and Futures Commission (SFC) in February of this year. However, the application was withdrawn on May 22, as indicated on the SFC’s website. The SFC did not provide a reason for the withdrawal, and Gate.io has not responded to requests for comment.

According to the SFC, crypto trading platforms that do not submit their license applications by February 29 are required to close their operations in Hong Kong by May 31 or within three months of further notification. This regulatory move has prompted numerous global exchanges to apply for retail trading licenses. The SFC is currently reviewing applications from 20 crypto firms, including notable names like OKX, Bybit, Bullish, and Crypto.com.

This development comes amid a broader trend of crypto platforms reevaluating their positions in the Hong Kong market. Last month, HKVAEX, a crypto platform reportedly associated with Binance, announced its shutdown following the withdrawal of its license application on March 28, with the platform officially closing on May 1. Additionally, Huobi HK, an affiliate of HTX in Hong Kong, withdrew its license application for the second time last week, raising further questions about its ability to operate legally in the region.

Gate.HK's decision to withdraw and overhaul its platform reflects the challenging regulatory environment and the necessity for compliance with local laws to maintain operations. The company’s future plans to re-enter the Hong Kong market hinge on obtaining the required licenses, signifying its continued commitment to the region's virtual asset ecosystem.