Cryptocurrency trading platform Bitget has opted not to pursue a Virtual Asset Trading Platform (VATP) license in Hong Kong, citing business and market-related considerations. The decision, announced on November 13, indicates that BitgetX, the Hong Kong division accessible through the domain BitgetX.hk, will cease operations by December 13, 2023. By choosing not to apply for a VATP license, Bitget will be required to permanently withdraw from the Hong Kong market.
The company is urging users to withdraw their crypto assets from BitgetX before the specified date, as the platform will no longer be accessible, and users won’t be able to manage or access their assets after that time. Bitget clarified that only withdrawals will be available, and users will not be able to trade their assets on the platform immediately. Additionally, the exchange will stop accepting new users from November 13 onward. Established in 2018, Bitget is a significant global crypto exchange with an average daily trading volume of nearly one million crypto assets, according to CoinGecko data. Bitget’s Hong Kong arm had previously affirmed its dedication to securing the Virtual Asset Trading Platform (VATP) license in line with Hong Kong’s Securities and Futures Commission’s crypto regulations initiated in June 2023.
The development coincided with OSL, one of the early crypto exchanges to secure a Hong Kong crypto license, announcing the suspension of stock market trading on November 13. This decision came at the request of the operator, BC Technology, leading to the temporary halt of OSL shares on the Stock Exchange of Hong Kong.
Industry sources suggest a rumor that Bitget may have acquired or invested in the OSL business. In October, BC Technology, the operator of OSL, reportedly explored the possibility of selling the OSL exchange for HKD 1 billion (approximately $128 million). The decision by Bitget underscores the evolving regulatory landscape and business considerations influencing crypto exchanges’ operations and compliance efforts in various jurisdictions, with the Hong Kong market witnessing notable developments in this context.
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