Hong Kong-based HTX, formerly known as Huobi Global, has withdrawn its application for a cryptocurrency exchange operating license, according to a filing on the Securities and Futures Commission (SFC) website on February 23.
Reason for HTX withdrawal not specified
cooperative, which is based in the Seychelles and linked to TRON’s founder, entrepreneur Justin Sun, did not disclose specific reasons for its withdrawal from the licensing process. Despite repeated attempts, HTX representatives could not be reached for comment at the time of publication.
Challenging sea navigation
HTX’s decision to withdraw its application comes as the exchange and its sister platform Poloniex are going through difficult times. Both exchanges have faced security breaches in recent years. Notably, Poloniex suffered a serious security breach in November, resulting in a loss of $125 million in hot wallets.
Despite these challenges, Sun, the owner of both platforms, assured users that losses were manageable and could be absorbed using the exchange’s profits. Sun has previously emphasized the safety of user deposits, saying they are “100% secure” despite a series of breaches.
Sun said both HTX and Poloniex have largely recovered from the security incidents and most user withdrawals have now resumed.
Crypto.com enters the arena
While HTX retreats, Crypto.com, a famous cryptocurrency exchange headquartered in Singapore, is accelerating its entry into the Hong Kong market. Last January, an application was submitted to the Hong Kong SFC to receive approval to operate a virtual asset trading platform (VATP). This move reflects Crypto.com’s strategic expansion plans and commitment to regulatory compliance.
Key Takeaways:
- HTX Withdrawal: HTX, formerly Huobi Global, withdrew its application for a cryptocurrency exchange license in Hong Kong, citing unspecified reasons.
- Security Concerns: This decision follows a security breach suffered by HTX and its sister platform Poloniex. Despite these challenges, owner Justin Sun remains optimistic about the platform’s resilience.
- Crypto.com’s Coverage: In contrast, Crypto.com is actively seeking regulatory approval to operate in Hong Kong, indicating its intention to establish a presence in the region’s cryptocurrency market.