- Hong Kong-based crypto trading platform BitgetX abandons plans for a Virtual Asset Trading Platform (VATP) license.
- The platform will cease operations in Hong Kong by December 13, urging users to withdraw assets before accessibility ends.
Hong Kong-based cryptocurrency trading platform, BitgetX, has decided to forgo its plans to obtain a Virtual Asset Trading Platform (VATP) license in the region. The company cited business and market-related considerations as the driving force behind this strategic decision.
Ceasing Operations by December 13, 2023
BitgetX officially communicated its decision on November 13, announcing the imminent cessation of operations by December 13, 2023. This move comes as the company opts not to pursue the VATP license, necessitating its permanent withdrawal from the Hong Kong market.
Deadline for Users
In light of this development, BitgetX has strongly advised its users to withdraw their crypto assets from the platform before the specified date. The company clarified that post-December 13, the BitgetX website will be inaccessible, rendering users unable to manage or access their assets on the platform. Notably, the platform will only support withdrawals, and trading activities will be disabled.
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Halting New User Registrations and Trading Activity
To facilitate the wind-down process, BitgetX has ceased the acceptance of new user registrations effective November 13. Additionally, trading activities on the platform have been brought to a halt. The company is focused on streamlining operations as it prepares to exit the Hong Kong market.
Bitget’s Commitment and OSL’s Suspension
BitgetX, the Hong Kong division of major global crypto exchange Bitget, had previously expressed its commitment to obtaining the VATP license. This commitment aligned with the new crypto framework introduced by Hong Kong’s Securities and Futures Commission in June 2023. However, the recent decision signals a departure from these plans.
The development coincides with the announcement by OSL, one of the first crypto exchanges to secure a Hong Kong crypto license, regarding the suspension of stock market trading on November 13. OSL ceased trading its shares on the Stock Exchange of Hong Kong at the request of its operator, BC Technology.
Unconfirmed Reports: Bitget’s Involvement with OSL
Industry sources have hinted at unconfirmed reports suggesting Bitget’s involvement with OSL. There is speculation that Bitget may have acquired or invested in the OSL business. This speculation gained momentum following reports in October that OSL operator BC Technology was considering selling the OSL exchange for $1 billion Hong Kong dollars, or $128 million.
On November 14, OSL announced a $90 million stock acquisition by cryptocurrency firm BGX, adding another layer of complexity to the unfolding narrative.
Also Read: Hong Kong Exploring Spot Crypto ETF Options for Retail Investors: Report
Final Takeaway
BitgetX’s decision to abandon plans for a crypto license in Hong Kong is a minor setback. As the company winds down its operations in the region, users are urged to withdraw their assets promptly. The move aligns with broader industry dynamics, with OSL’s suspension and the ongoing speculation surrounding Bitget’s potential involvement in OSL’s business adding layers of complexity to the unfolding narrative.
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