The number of crypto exchanges seeking operational licenses in Hong Kong is steadily decreasing, even as the deadline approaches.

Three crypto exchanges recently withdrew their license applications filed with the Securities and Futures Commission of Hong Kong (SFC). On May 13, crypto exchanges IBTCEX and QuanXLab withdrew their applications, initially filed in February 2024.

Huobi HK, a crypto exchange with links to HTX, followed suit the next day, as shown in the screenshot below.

Seven crypto exchanges have withdrawn their Hong Kong license applications in 2024. However, the reasons behind the withdrawal were not revealed on the HKSFC’s website. All cryptocurrency exchanges that have not applied for a license must cease operations in Hong Kong by May 31.

Currently, 21 crypto exchanges are lined up for a license in Hong Kong, which includes prominent global players such as Bybit, Crypto.com, Matrixport HK, HKX and OKX.

The most recent application was submitted by Bitcoin World Technology Limited on behalf of the bitcoinworld" crypto exchange on May 17.

Related: Mainland China investors won’t be able to buy Hong Kong Bitcoin ETFs

The Hong Kong Monetary Authority (HKMA) recently launched a pilot program for the digital yuan. This marks the first deployment of the CBDC outside of mainland China.

Currently, Hong Kong residents only need their mobile phone number to create an e-CNY wallet, which can currently facilitate cross-border payments but cannot be used for person-to-person transactions.

On the other hand, the pilot will enable Hong Kong residents to facilitate transactions from their digital yuan wallets, which can be topped off through 17 retail banks using the Faster Payment System (FPS).

According to Eddie Yue, the chief executive of the HKMA, the e-CNY application and wallet will gradually gain more functionality as the HKMA and PBoC work on facilitating more retail merchant adoption.

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