Crypto.com to Shut Down Consumer App in Hong Kong by 2027, Focuses on Institutional Exchange Licensing
Crypto.com plans to terminate its consumer app services in Hong Kong effective February 1, 2027, while maintaining efforts to secure regulatory approval for its institutional trading platform.
The company confirmed the upcoming shutdown to Bloomberg on Monday, stating that all impacted users have been informed and will receive detailed guidance on how to close their accounts and withdraw their funds.
HK01, a local news outlet, reported that Crypto.com attributed the closure to regulatory changes in letters sent to its Hong Kong users. The consumer app is managed by Foris DAX MT Limited, whereas Foris DAX HK Limited, a separate legal entity, has applied for a virtual asset trading platform license in Hong Kong.
Public records from the Securities and Futures Commission (SFC) show that Foris DAX HK Limited filed its VATP licensing application on February 9, 2024. Nearly three years later, the entity remains in a 'deemed-to-be-licensed' status, which is a provisional designation rather than full official approval.
Crypto.com also informed Bloomberg that it will persist in pursuing licensing for its institutional-grade Crypto.com Exchange platform.
Cointelegraph sought comment from Crypto.com but did not receive a reply before publication.
Crypto.com's decision to cease consumer operations in Hong Kong highlights the complexities of local regulatory compliance, while its ongoing efforts to obtain a license for its institutional exchange reflect a strategic focus on expanding regulated services in the region.
Why it matters
The shutdown of Crypto.com’s consumer app underscores the challenges posed by evolving regulations in Hong Kong, emphasizing the importance of regulatory compliance for crypto companies to operate sustainably.
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