Cryptocurrency trading platform Bitget has chosen to forgo its pursuit of a Virtual Asset Trading Platform (VATP) license in Hong Kong, citing strategic considerations in response to evolving market dynamics.
In an official announcement on 13 November, Bitget revealed that its Hong Kong division, BitgetX, operating through the domain BitgetX.hk, will bring its operations to a close by 13 December 2023.
The decision not to pursue a VATP license has broader implications, necessitating Bitget’s permanent withdrawal from the Hong Kong market.
Users have been strongly advised to initiate crypto asset withdrawals from BitgetX before the specified date.
After 13 December, the platform will become inaccessible, offering only withdrawal functionality.
The statement wrote:
“After this date, the BitgetX website will no longer be accessible and you will not be able to manage or access your assets on BitgetX,”
New user registrations have been temporarily halted since 13 November.
Bitget, a player in the global cryptocurrency exchange arena, facilitating trades of nearly one million in crypto daily according to CoinGecko, had previously affirmed its commitment to securing a VATP license.
This commitment was aligned with the regulatory framework introduced by Hong Kong’s Securities and Futures Commission in June 2023.
Bitget’s Strategic Shift
The shift in Bitget’s strategy coincides with a broader trend in the industry.
Notably, OSL, another crypto exchange holding a Hong Kong license, recently suspended stock market trading.
Adding intrigue to the narrative are industry murmurs suggesting a potential connection between Bitget and OSL.
Rumors circulating hint at Bitget’s acquisition or investment in OSL’s business, bringing a layer of complexity to the evolving landscape of crypto exchanges.
Bitget’s decision to abandon its pursuit of a Hong Kong license reflects a response to market dynamics, marking a significant development in the landscape of cryptocurrency exchanges, with potential ripple effects on industry players in the region.