Crypto exchange BitMart has officially withdrawn its application for a Virtual Asset Service Provider (VASP) license in Hong Kong, joining several other major exchanges that have taken similar steps.
According to the Hong Kong Securities and Futures Commission (SFC), BitMart pulled its application on Thursday, aligning with a trend that began in 2024, when top exchanges like Bybit, OKX, and Gate also withdrew their applications ahead of the regulatory deadline.
This wave of withdrawals comes as Hong Kong enforces stringent licensing requirements for crypto trading platforms.
Hong Kong’s Strict Licensing Framework
Hong Kong’s VASP rules require any centralized crypto exchange operating locally or marketing to Hong Kong investors to obtain an SFC license. The conditions are rigorous, including:
- Maintaining liquid assets equal to at least 12 months of operating expenses
- Holding a minimum of HK$5 million ($641,490) in paid-up share capital
- Keeping 98% of client assets in cold storage
- Whitelisted address-only transfers for security
- Comprehensive insurance coverage for hot and cold storage wallets
Additionally, recent custody regulations have tightened controls further, prohibiting reliance on smart contracts for cold wallet management.
Related:Hong Kong Construction Firm’s Stock Jumps on $483M Bitcoin Treasury Bet
Licensed Exchanges and Hong Kong’s Crypto Ambition
As of 2025, 11 crypto exchanges operate under official SFC licenses in Hong Kong, including PantherTrade, YAX, Bullish, and BGE. The city aims to establish itself as a global crypto hub, leveraging its financial infrastructure while maintaining high compliance standards.
Hong Kong’s regulatory push also extends to stablecoin issuers, with the Hong Kong Monetary Authority finalizing a strict framework earlier this month. Analysts say these measures, though challenging for some firms, aim to boost investor confidence and market integrity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.