Gate.HK, the Hong Kong wing of the global cryptocurrency exchange, Gate.io, is in the process of shutting down and has not been listed to carry out its crypto trading platform business in the region. This was expressed in a statement made by the company on Wednesday. It started in May 2023 and applied for the approval with Hong Kong Securities and Futures Commission (SFC) in February but the service withdrew its application on May 22.
Urgent User Action Required
In the same statement, Gate.HK asked its users to pull out their funds by August 28, pointing to a major revamp of its existing website. It also stated that it will terminate future user sign-up and deposits as of today. Additionally, all tokens, including those with higher circulation, like Bitcoin, Ether, Bitcoin Cash, Litecoin, Solana, Polkadot, Polygon, Uniswap, and USDT, will be removed from the platform before May 28, as required by local laws.
“Gate.HK is actively pursuing the aforementioned overhaul,” the company noted. “In the future, we will continue our business in Hong Kong when we gain the corresponding licenses, and then continue to improve the virtual asset environment. ”
Future Plans and Regulatory Compliance
For now, Gate remains closed due to the current challenging economic situation in the country. HK currently operates in the Hong Kong market but has stated its intention to re-enter the market after obtaining necessary licenses. The grounds for application withdrawal were not explained by the SFC and Gate has not followed suit in revealing these facts either. Notably, io has not given any comments regarding the issue. The proposal forms a bigger plan to respect regional legal systems regarding trading practices that are safe for its users.
Indeed, on the official website of the SFC, it was mentioned that the withdrawal has occurred, making it a drastic shift in Gate.
