Hong Kong consumer app shutdown announced by Crypto.com amid regulatory shift
The cryptocurrency exchange Crypto.com has announced plans to cease operations of its consumer-facing application in Hong Kong. At the same time, the company's institutional arm remains in the licensing queue for approval of a crypto trading platform application submitted during 2024.
The cryptocurrency exchange platform Crypto.com has announced it will terminate consumer application services in Hong Kong effective Feb. 1, 2027, even as the company maintains its pursuit of regulatory clearance for its institutional exchange operations.
The firm verified the closure on Monday in a statement to Bloomberg, noting that impacted users had already been informed and would be provided with guidance regarding account closure procedures and the withdrawal of their funds.
Based on reporting from Hong Kong-based news publication HK01, Crypto.com referenced evolving regulatory requirements in communications distributed to its Hong Kong user base. The consumer-facing application operates under Foris DAX MT Limited, whereas a distinct corporate entity, Foris DAX HK Limited, has filed an application for a virtual asset trading platform license in Hong Kong.
Public records maintained by the Securities and Futures Commission (SFC) indicate that the company's Hong Kong-based entity filed its application for a VATP license on Feb. 9, 2024. After nearly three years have elapsed, Foris DAX HK Limited continues to hold a "deemed-to-be-licensed" designation — which represents a provisional status that falls short of complete regulatory authorization.
In its statement to Bloomberg, Crypto.com indicated it would maintain its efforts to advance the licensing application for its institutional-focused Crypto.com Exchange platform.
Cointelegraph contacted Crypto.com requesting additional commentary but had not received any response by the time of publication.