Bitget has abandoned its pursuit of a Virtual Asset Trading Platform license in Hong Kong. This decision is attributed to factors related to the crypto exchange’s business and the digital asset landscape, the company said in its official statement today (Monday).

Bitget’s Hong Kong division, BitgetX, will cease operations by December 13, 2023. After this date, BitgetX’s website will be inaccessible. The company has emphasized the importance of compliance with this deadline. Failure to withdraw assets in time will result in losses once BitgetX is closed.

However, the crypto exchange has assured its users that its priority is to ensure a smooth and orderly offboarding process. Its customer support team is available to address any concerns or queries related to the closure and the subsequent transfer of assets.

Bitget Faces Regulatory Pressure in Hong Kong

In April, Bitget launched BitgetX to cater to spot and peer-to-peer trading in Hong Kong. Following the launch of the new platform, Bitget announced that it was ceasing operations in the region due to regulatory changes that took effect on June 1, 2023.

Subsequently, Bitget's users in Hong Kong were urged to migrate to www.BitgetX.hk by April 24, 2023. This process involved accepting the exchange's terms of use on Bitget.com, creating BitgetX.hk account, and transferring virtual assets to the new platform.

Additionally, users were given two weeks to close the open perpetual contract and margin trading positions and to withdraw virtual assets from their savings accounts. After this period, Bitget stated that the remaining open positions would be automatically closed, and assets would be released into the users' Bitget wallet.

Hong Kong's Tough Stance on Crypto Platforms

Despite Hong Kong easing its cryptocurrency regulations, the Securities and Futures Commission (SFC) raised concerns regarding the surge in improper activities by unlicensed virtual asset trading platforms in August. This happened about two months after the regulator welcomed back retail crypto traders.

The SFC highlighted the dissemination of false information about cryptocurrency license applications and companies operating without local regulatory compliance . It also mentioned that entities were setting up operations in the region without required authorizations.

Nonetheless, the SFC is exploring the possibility of granting retail investors access to spot crypto exchange-traded funds, according to a recent statement by Julia Leung, the CEO of the SFC, as quoted by Finance Magnates. Leung, who assumed office on January 1, 2023, has expressed willingness to embrace innovative technology that enhances efficiency and customer experience.

Currently, Hong Kong allows the trading of crypto ETFs based on futures. This follows a regulatory framework established in June. Notable funds include the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs, with a combined asset value of around $65 million.