BitMart joins others in retracting Hong Kong crypto license applications amid strict regulations.
Contents
2 min read
BitMart Withdraws Application for Hong Kong Crypto License
In a significant move within the cryptocurrency sector, BitMart has retracted its application for a virtual asset service provider (VASP) license in Hong Kong. This decision aligns BitMart with several other major exchanges that have opted out of the Hong Kong market amid stringent regulatory demands.
Wave of Withdrawals
Related: Hong Kong Embraces Bitcoin as a National Reserve Asset for Financial Security
The Hong Kong Securities and Futures Commission (SFC) confirmed BitMart’s withdrawal, which follows a trend seen with other exchanges such as Bybit, OKX, and Gate.io. These platforms have pulled back their applications following the enforcement of strict local regulations that mandate comprehensive financial requirements and operational protocols for crypto exchanges.
According to the SFC’s guidelines, any crypto platform operating in Hong Kong must maintain liquid assets equivalent to at least 12 months of operating expenses and hold a minimum of 5 million Hong Kong dollars in paid-up share capital. Additionally, 98% of client assets must be stored in cold storage, with transfers restricted to whitelisted addresses. These measures are part of Hong Kong’s broader strategy to tighten control over the crypto industry and prevent unlicensed operations.
Related: Global Cryptocurrency Regulation: Challenges, Advocacy, and Enforcement
Hong Kong’s Regulatory Landscape
Hong Kong has positioned itself as a potential crypto hub, aiming to leverage its status as a financial center. The region’s regulatory framework is designed to support the crypto industry while safeguarding investor interests. As part of this effort, the Hong Kong Monetary Authority recently finalized its regulatory framework for stablecoin issuers, further tightening the grip on the digital asset market.
Despite these rigorous standards, Hong Kong has granted operational licenses to four crypto exchanges, including PantherTrade and YAX, indicating a selective but open approach to crypto market participation. This reflects Hong Kong’s ambition to balance innovation with security, as it seeks to establish itself as a leading player in the global crypto economy.
Related: Hong Kong to Strengthen Digital Asset Regulation Over the Next 18 Months
Implications for the Crypto Industry
The withdrawal of applications by prominent exchanges signals a cautious response to Hong Kong’s regulatory environment. While some firms view the regulations as a barrier, others see them as necessary for sustainable growth. The ongoing adjustments in Hong Kong’s crypto policies underscore the challenges and opportunities within the rapidly evolving digital asset landscape.
As Hong Kong continues to refine its regulatory stance, the global crypto community watches closely, assessing the implications for market access and operational viability. For more information, see the SFC’s official guidelines and recent reports from CoinDesk and Reuters.
Emily brings a decade of expertise in blockchain technology and decentralized finance (DeFi). She specializes in market trends and regulatory developments, providing in-depth analyses that resonate with seasoned investors and beginners alike. With a background in financial journalism, she is dedicated to bringing clarity to the fast-paced world of crypto.
