Bitget’s decision to resign from the Hong Kong crypto market and abandon their pursuit of a VATP license shakes the industry, urging users to withdraw their funds by Dec 13.
Bitget has opted to discontinue its efforts to obtain a license in Hong Kong to operate a virtual asset trading platform (VATP).
The crypto community is buzzing at Bitget’s reevaluation of its market strategy in light of shifting business and market conditions, which is reflected in this decision.
Strategic Shift at Bitget
Official confirmation of Bitget’s strategic shift came on November 13, when the organization disclosed that BitgetX, its subsidiary located in Hong Kong, will terminate its activities on December 13, 2023.
This action represents Bitget’s withdrawal from the Hong Kong market, as the company is obligated to cease its regional operations due to the lack of a VATP license.
As a result, BitgetX has urged users to withdraw their crypto assets before the specified deadline.
The BitgetX website will be rendered inaccessible after December 13, preventing users from accessing or managing their assets on the platform.
Notably, this announcement corresponds with an overarching pattern within the cryptocurrency sector, wherein regulatory landscapes are perpetually changing, requiring exchanges to adjust promptly.
The fact that Bitget ceased operations and declined to apply for the VATP license highlights crypto exchanges’ difficulties and complexities when navigating regulatory frameworks in various jurisdictions.
Implications for the Market and Users
This development requires Bitget users to immediately redirect their attention towards withdrawing their assets, as trading operations have been discontinued, and only withdrawal operations remain functional.
Moreover, since November 13, the exchange has ceased the acceptance of new users, thereby reiterating its dedication to a seamless and systematic withdrawal from the Hong Kong market.
Furthermore, this withdrawal occurs on the same day that OSL, an additional cryptocurrency exchange operating under a Hong Kong license, declared a halt to its stock market operations.
This concurrent advancement introduces an additional level of complexity to the crypto market in Hong Kong, which may indicate a change in the regulatory and business environment of the area.
