Bitget has suspended plans for a crypto license in Hong Kong
Bitgate announced that its Hong Kong unit will cease operations on December 13. The crypto exchange said the decision was based on business and market-related issues. Users have to withdraw their money till then.
Bitgate Hong Kong has announced that its unit does not want to register as a virtual asset trading platform in Hong Kong.
The crypto exchange will cease all operations on December 13.
Bitget stopped the Hong Kong section
Biget's decision to cease operations of its Hong Kong unit and withdraw from the license search comes amid rumors that the company may be eyeing a possible deal with OSL, the first crypto exchange licensed in Hong Kong.
According to crypto news account Wu Blockchain, OSL announced on Monday that it has suspended trading of shares.
BitgetX hk has announced its decision not to apply for a regulated cryptocurrency exchange license in Hong Kong. Market rumors that Bitgate has acquired or invested in Hong Kong's first licensed OSL. OSL announced today that it has ceased trading due to major…
— Wu Blockchain (@WuBlockchain) November 13, 2023
BC Technology Group, which owns OSL, cited a “notifiable transaction involving information” in an announcement to the Hong Kong Stock Exchange.
Bitgate, for its part, cited “business and marketing issues.”
“With all our hearts, we regret to inform you that we have decided not to pursue the Hong Kong Virtual Asset Trading Platform (VATP) license due to business and market-related issues. As a result of this decision, the BitgetX website (www.BitgetX.hk) will cease operations from 13 December 2023. Similarly, Bitgetx.hk will permanently withdraw from the Hong Kong market, writes the crypto exchange.
According to the platform, users are advised to withdraw their assets within the specified time limit, then the BitgetX.hk website will be offline.
It is very important that you withdraw your assets before the deadline. Failure to do so will result in the inability to access these assets after BitgetX is shut down,” the exchange said in an announcement FAQ.
Hong Kong's new crypto licensing framework
Bitget unveiled its HK division in April this year, which offers spot trading and peer-to-peer (P2P) transactions to its customers. The move comes ahead of the Hong Kong Crypto Licensing Framework released in June.
The new requirements require crypto providers to seek and receive approval from the Securities and Futures Commission before offering trading services and products to retail clients. The SFC has also warned crypto firms about misleading their clients about licensing by pointing to yet-to-be-registered domestic arms.
