Potential Delisting of Tokens Pending Compliance Review

HONG KONG — 4 OCTOBER 2017 — Following the Hong Kong Securities and Futures Commission’s (SFC) statement on initial coin offerings (also known as ICOs or token sales) on 5 September 2017, Gatecoin has been working with legal advisors to determine the impact of the statement on our business.

We are currently awaiting the results of a regulatory compliance review by our legal advisors on the legal status of specific tokens that we have listed on our 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.

Tokens deemed likely to be categorized as securities will be delisted from Gatecoin. Once we have 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 credit of that token will no longer be available through our exchange. However, Gatecoin will still be able to store the delisted tokens in our wallets on behalf of clients that maintain balances after trading and credit 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. We will send multiple updates to clients with balances in these delisted tokens to ensure that they are adequately informed of the inability to trade these tokens on our exchange following the delisting.

A future update will specify which tokens will be delisted from our exchange.

In the meantime, if you have any questions please contact:

· support@gatecoin.com — for existing Gatecoin clients / general enquiries

· media@gatecoin.com — for journalists / media organizations

Thank you for your cooperation,

The Gatecoin Team