Bitget’s Hong Kong division, BitgetX, has decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong despite operating in the region within the last seven months.
In a Nov. 13 statement, the exchange said BitgetX is immediately ceasing all trading activities and will shut all its operations by Dec. 13. However, the platform users can still withdraw their assets before the BitgetX website becomes inactive in December.
“It is with a heavy heart that we inform you that due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong,” part of the statement reads. “The BitgetX website (www.BitgetX.hk) will cease operations from Dec. 13, 2023. At the same time, Bitgetx.hk will permanently withdraw from the Hong Kong market.”
Meanwhile, this move comes as a surprise, considering Bitget had launched the BitgetX platform as part of its efforts to comply with the regulatory demands of the authorities in Hong Kong.
Bitget had yet to respond to CryptoSlate’s request for additional commentary as of press time.
Bitget is one of the largest crypto exchanges, with over 20 million users. The platform recorded a spot trading volume of $1.3 billion during the last 24 hours, according to CoinMarketCap data.
Hong Kong continues pro-crypto efforts.
Local lawmaker Chiu Ta-kan has suggested Hong Kong’s inclusion of Bitcoin (BTC) purchases on licensed exchanges in Hong Kong’s investment immigration program is still unclear and needs further clarification, as reported by a local media outlet.
This initiative is part of a broader strategy by the authorities to attract family offices and affluent individuals through a tax-friendly environment and potential immigration benefits.
After an eight-year hiatus, the program was reintroduced in March, requiring investment of up to approximately 30 million yuan, $3.84 million. The goal is to attract up to 200 family offices to Hong Kong by the end of 2025.
Disclaimer: Bitget is a CryptoSlate advertising partner.