Halt of Operations: Bitget's Hong Kong Unit Opts Out of Crypto Licensing

BitgetX HK, which initiated its operations in April, has made the strategic choice to conclude its activities in Hong Kong. The official closure is scheduled for December 13. The Hong Kong unit of the cryptocurrency exchange communicated this resolution on Monday, declaring its decision to forego the pursuit of a local crypto license.

Originally, BitgetX HK was established in April with a primary focus on spot trading and peer-to-peer (P2P) transfers. However, the platform has now altered its approach, allowing users only to make asset withdrawals until its planned shutdown in December. The company has opted not to undergo the process of obtaining a Hong Kong crypto license, a decision conveyed through an official announcement.

Expressing regret in the statement, the company noted, 

"It is with a heavy heart that we inform you that due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong. Simultaneously, BitgetX.hk will permanently withdraw from the Hong Kong market."

The decision is set against the backdrop of Hong Kong introducing a new licensing framework for crypto asset service providers in June. This framework expands to encompass retail trading, reflecting regulatory efforts to subject the cryptocurrency industry to more comprehensive oversight. Notably, other crypto companies in the region, such as Hashkey and SEBA, have successfully obtained approval under the updated Securities and Futures Commission (SFC) regime.

BitgetX HK's withdrawal from the Hong Kong market highlights the challenges and considerations faced by crypto exchanges as they navigate evolving regulatory landscapes. The choice not to pursue a local license underscores the intricate interplay between business strategy, market dynamics, and regulatory compliance in the rapidly evolving cryptocurrency sector.

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