Calling off the demonstration planned for Saturday, the organizers said the most important thing is public safety, both physically and legally.
The police had banned the event on Thursday, saying safety could not be guaranteed.
This weekend is the fifth anniversary of Beijing's rejection of universal suffrage in Hong Kong that led to the 2014 Umbrella Movement.
Meanwhile, prominent pro-democracy activist Joshua Wong was arrested this morning, which also seems to have contributed to the decision to cancel.
According to the activist group he's a member of, Wong was pushed into a private vehicle near a subway station in the southern part of the city.
The 22-year-old was the face of the 2014 Umbrella Movement, for which he spent time in jail.
He was released this year on June 17th, after which he joined the new protests.
He is now in police custody along with three other high-profile activists.
The latest protests have gone on for more than 80 days now, making them the longest in Hong Kong's history.
Safety concerns have intensified since last week's police crackdown and the arrival of fresh troops from mainland China on Thursday.
Lee Kyungeun, Arirang News.