Crypto.com to Shut Down Hong Kong App in February, Citing Regulatory Changes

TLDR

• Crypto.com will end its consumer app services in Hong Kong on Feb. 1, 2027.
• The company cited regulatory changes in emails sent to Hong Kong users.
• Affected customers will get instructions to close accounts and withdraw funds.
• A separate entity is still seeking a Hong Kong trading platform license from the SFC.
• That license application has been pending since Feb. 9, 2024.

Crypto.com will shut down its consumer app services in Hong Kong on Feb. 1, 2027. The company said the decision follows regulatory changes in the city.

The exchange will keep working toward a license for its institutional trading platform in Hong Kong. That platform is separate from the consumer app that is closing.

Crypto.com confirmed the shutdown to Bloomberg on Monday. The company said affected customers had already been told about the change.

Users Told to Close Accounts and Withdraw Funds

Customers will receive instructions on how to close their accounts. They will also be told how to withdraw their funds before the service ends.

Local news outlet HK01 reported that Crypto.com sent emails to its Hong Kong users about the closure. The emails cited regulatory changes as the reason for the move.

The shutdown date gives users about three months to act. The consumer app will stop operating at the start of February next year.

The reports did not say how many users in Hong Kong will be affected. They also did not list which specific regulatory changes led to the decision.

The consumer app in Hong Kong is run by a company called Foris DAX MT Limited. This entity is responsible for the retail service that is being discontinued.

A different entity, Foris DAX HK Limited, handles the license application. It is seeking approval to run a virtual asset trading platform, known as a VATP, in Hong Kong.

License Application Still Pending After Nearly Three Years

Hong Kong’s Securities and Futures Commission keeps a public register of crypto trading platforms. The SFC is the regulator that oversees licensing for these platforms in the city.

The register shows that Foris DAX HK Limited submitted its VATP license application on Feb. 9, 2024. That was nearly three years ago.

The entity is still listed as “deemed-to-be-licensed” on the register. This is a transitional status and does not mean full regulatory approval.

Hong Kong’s licensing system for virtual asset trading platforms took effect on June 1, 2023. Platforms that were already operating in the city could apply during a transition period.

Under the “deemed-to-be-licensed” status, a platform can keep operating while the SFC reviews its application. It still needs a final decision from the regulator to become fully licensed.

Cointelegraph contacted Crypto.com for comment on the shutdown. The company did not respond before publication.

Crypto.com told Bloomberg it will continue to pursue its license application. The application covers its institutional-grade platform, Crypto.com Exchange, which is not part of the consumer app closure.

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