Cryptocurrency exchange Bitget announced it will cease operations of its Hong Kong platform on December 13. The exchange opted not to apply for a new local crypto license.
However, with Hong Kong implementing a new licensing regime for virtual asset providers this summer, Bitget has decided to wind down BitgetX HK instead of seeking approval.
“Due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong,” the company said in its announcement.
BitgetX HK has immediately halted new user registrations. It will only permit customers to withdraw their funds leading up to the platform’s shutdown in December. This comes after Hong Kong implemented a new licensing regime in June for virtual asset trading platforms. The regime also granted approved firms the ability to provide services to retail crypto investors.
The closure underscores the significant challenges cryptocurrency exchanges can face in adapting to rapidly evolving regulatory environments across different jurisdictions. Although Bitget’s primary international exchange based in Singapore will continue operating, the shuttering of its Hong Kong platform mere months after launch exemplifies the difficult operating conditions in the crypto exchange industry.