Crypto exchange Gate eyes Hong Kong licence even as compliance costs challenge growth

Core Viewpoint - Gate, a cryptocurrency exchange, is considering reapplying for a virtual asset trading platform license in Hong Kong, but faces challenges due to high compliance costs and a competitive market [1][2][6]. Group 1: Company Overview - Gate was founded in mainland China in 2013 and is currently the world's third-largest cryptocurrency exchange by 24-hour trading volume, following Binance and Bybit [5]. - The company previously withdrew from the Hong Kong market after a one-year grace period for licensing applications [6]. Group 2: Regulatory Environment - The Hong Kong regulatory framework for digital assets has imposed high compliance costs, making it difficult for companies to operate profitably in the region [2][7]. - Gate is monitoring the performance of other licensed platforms in Hong Kong to assess the feasibility of reactivating its licensing efforts [2][4]. Group 3: Market Challenges - The competitive nature of the Hong Kong market, combined with high licensing costs and limited product offerings, presents significant challenges for Gate [7]. - Users in Hong Kong have many options from overseas platforms, making it difficult for Gate to attract local customers [7].