- Bybit has withdrawn its software for a digital asset buying and selling platform license in Hong Kong.
- Main exchanges like Gate.io's Binance, OKX, and HTX additionally confronted the same destiny.
- There’s hypothesis that Hong Kong's SFC could also be hesitant to grant licenses to offshore exchanges presently.
Bybit, a number one digital asset buying and selling platform (VATP), has withdrawn its software for a license to function in Hong Kong, becoming a member of a rising record of worldwide platforms unable to achieve regulatory approval.
The alternate initially submitted its software to the Hong Kong Securities and Futures Fee (SFC) on January 31, 2024, however formally withdrew it on Could 31, in accordance with an up to date record on the SFC's web site.
Bybit's choice displays a sample seen with different main exchanges resembling Binance, Gate.io and HTX, whose functions have both been returned, rejected or pulled.
Market insiders speculate that Hong Kong's SFC could also be hesitant to grant licenses to offshore exchanges, though no official assertion has been made to verify the rumours.
The SFC maintains an inventory of VAT candidates whose license functions have been rejected for quite a lot of causes, together with incomplete submissions, unresolved substantive points or voluntary withdrawals by the candidates. The latest removals embody these of Gate Digital Restricted (Gate.io) and OKX, whose apps had been taken down on Could 22 and Could 24, 2024.
The SFC additionally publishes an inventory of licensed digital asset buying and selling platforms, however the regulator clarifies that it doesn’t endorse their efficiency or creditworthiness. The record consists of entities resembling OSL Digital Securities and Hash Blockchain, which have formal licenses to function in Hong Kong as of 2020.
The withdrawal of Bybit's software and the obvious pattern of offshore exchanges dealing with difficulties in acquiring licenses in Hong Kong might point out a tightening of regulatory oversight within the area.
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