Hong Kong regulators have mandated that all cryptocurrency exchanges without an operational license from the Securities and Futures Commission (SFC) must cease operations immediately. This regulatory crackdown underscores the SFC's commitment to fostering a secure and transparent environment for virtual asset trading.

Cryptocurrency exchanges were given an ultimatum: apply for a license by February 29 or shut down within three months. In response, over 22 exchanges applied for licenses, but many withdrew their applications before the deadline. In May alone, six exchanges, including global players like OKX and Huobi HK, exited the Hong Kong market.

Gate.HK, a Hong Kong-based exchange, cited the need for a "major overhaul" of its trading platform to comply with regulatory requirements. Following its license withdrawal, Gate.HK ceased user acquisition and marketing, giving existing users until August 28 to withdraw funds. The platform ceased operations on May 28, delisting all previously tradable tokens such as Bitcoin, Ether, Solana, and Polygon.

Gate.HK plans to resume business in Hong Kong after obtaining the relevant licenses and contributing to the virtual asset ecosystem. As of May 31, 18 cryptocurrency exchanges had applied for an operational license in Hong Kong. The SFC is set to announce the approved exchanges by June 1, with HashKey and OSL Exchange currently the only approved platforms.

Investors are advised to check the official list of approved exchanges to minimize risks associated with trading cryptocurrencies. The SFC’s decision may force some exchanges to shut down their operations in Hong Kong if they are not granted a license.