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Why this crypto exchange chose to bow out of the Hong Kong market

2min Read

As crypto exchange Bitget chooses to exit the Hong Kong market, what will be the repurcussions across the industry?

Why this crypto exchange chose to bow out of the Hong Kong market

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  • The decision was made citing “business and market-related considerations.”
  • Rumors of Bitget acquiring or investing in OSL were doing the rounds in the market.

Cryptocurrency exchange Bitget decided against applying for a Virtual Asset Trading Platform (VATP) license in Hong Kong. This license is a mandatory requirement for firms looking to offer crypto trading in the region.

Thus, Bitget will cease operations of its Hong Kong arm, BitgetX, starting on the 13th of December, and exit the Hong Kong market, the official announcement read.

Bitget shuts down operations in Hong Kong

Bitget urged all BitgetX users to withdraw their crypto funds within the deadline, or they would be locked out. Moreover, trading would remain suspended on the platform and only withdrawals would be allowed.

Bitget also said that it would not accept new users on the platform going forward.

The Seychelles-headquartered company attributed the decision to “business and market-related considerations.”

Bitget’s exit comes amidst the rush of crypto companies to get licensed in the special administrative region, following the newly formulated regulatory framework for digital asset trading platforms.

Previously restricted to institutional investors, the new guidelines allowed trading platforms to serve the public as well.

Are the rumors true?

As of this writing, just two platforms, OSL and HashKey, were granted permission to operate, according to official data.

Interestingly, rumors of Bitget acquiring or investing in OSL were doing the rounds in the market. However, there was no solid evidence at press time to support the speculations.

Bitget was the fourteenth-largest crypto exchange globally in the last 24 hours, clocking spot volumes of $1.2 billion, as per CoinGecko.

The exchange was recently in the news due to a dispute with the meme coin project Floki [FLOKI]. The controversy revolved around the listing of Floki’s sister project, TOKEN, with both parties leveling serious allegations against each other.

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Aniket is a full-time journalist at AMB Crypto. With experience in news publishing and content management, he is now increasingly tangled up in the web of cryptocurrencies and blockchains. His focus lies on the intersection between cryptos and traditional finance. He prefers DC over Marvel, cats over dogs and Hyderabadi Biryani over Kolkata Biryani.
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