Gatecoin, a Hong Kong cryptocurrency exchange, has announced the plans to delist all tokens that double as securities.
Thus, according to the company, the exchange is "currently awaiting the results of a regulatory compliance review by the legal advisors on the legal status of specific tokens" that the company have listed on the exchange. "The review will determine whether a token that we have listed fits the category of a security under the Hong Kong Securities and Futures Ordinance, and if so whether the token founders have taken steps to structure their token in accordance with the SFC’s framework", - Gatecoin team details.
As reported, the tokens categorized as securities will be delisted from Gatecoin. Once the company has confirmed which of these tokens are to be delisted, clients will have one week to trade their tokens for Bitcoin (BTC) or Ether (ETH). After this period, both trading and deposits of that token will no longer be available through Gatecoin exchange.
Yet, Gatecoin will still be able to store the delisted tokens in the wallets on behalf of clients that maintain balances after trading and deposits have been disabled. Clients continuing to hold balances in these delisted tokens will be provided with a one-month period to withdraw these funds from their Gatecoin accounts.