BitgetX Drops Plans for Virtual Asset Trading Platform License in Hong Kong
Cryptocurrency trading platform BitgetX has announced that it will no longer pursue a Virtual Asset Trading Platform (VATP) license in Hong Kong. The decision is based on various business and market-related considerations. BitgetX’s Hong Kong division, accessible via the domain BitgetX.hk, will cease operations by December 13, 2023.
As a result of not applying for a VATP license, BitgetX will have to permanently withdraw from the Hong Kong market. The company is strongly urging its users to withdraw their crypto assets from the platform before December 13. After this date, the BitgetX website will no longer be accessible, and users will not be able to manage or access their assets.
BitgetX has emphasized that only withdrawals will be available, and trading assets on the platform will not be possible. Additionally, the exchange has stopped accepting new users since November 13.
Bitget, launched in 2018, is a major global crypto exchange, with a daily trading volume of nearly one million in crypto, according to CoinGecko data. The Hong Kong division of the exchange has previously expressed its commitment to obtaining the VATP license in compliance with Hong Kong’s Securities and Futures Commission’s crypto framework, which came into effect in June 2023.
The recent news coincides with OSL, one of the first crypto exchanges to acquire a Hong Kong crypto license, announcing the suspension of stock market trading on November 13. OSL halted trading of its shares on the Stock Exchange of Hong Kong at the request of its operator, BC Technology. There have been unconfirmed reports that BitgetX has acquired or invested in the OSL business. In October, BC Technology reportedly considered selling the OSL exchange for $1 billion Hong Kong dollars, or $128 million. On November 14, OSL announced a $90 million stock acquisition by cryptocurrency firm BGX.
It remains to be seen how these developments will shape the crypto landscape in Hong Kong and beyond.