Crypto Exchange Bitmart has withdrawn its application for a Hong Kong virtual asset service provider license.
Bitmart retracted its application on Thursday, according to a list of virtual asset trading platforms maintained by Hong Kong regulator Securities and Futures Commission (SFC).
This followed similar decisions by other crypto trading platforms. The major Crypto Exchange Bybit was applied last year, but the application was withdrawn at the end of May 2024. Similarly, OKX retracted its application at the end of May, just like GATE.
A list of applicants whose license application has been returned, rejected or withdrawn. Source: Hong Kong SFC
As reported by the Cointelegraph at the time, a wave of crypto exchanges retracted the application ahead of the deadline for local regulators to oust all unauthorized platforms. This was the result of strict requirements for local crypto exchanges.
Related: Hong Kong warns of fraud risk after new Stablecoin rules
High requirements for Hong Kong crypto exchange
Hong Kong law requires local investors to have a centralized cryptographic platform that operates territory or marketing in order to obtain licenses by the SFC. The licensing requires the platform to make liquid assets equivalent to at least 12 months of operating expenses and maintain a salary equity capital worth at least $5 million in Hong Kong dollars ($641,490).
Additionally, 98% of client assets must remain in cold storage, with transfers being limited to whitelisted addresses only. Regulators require strict key controls and insurance must cover 100% and 50% refrigerated holdings of hot storage.
New Crypto Custody Services rules, approved earlier this month, further strengthen control and rely on smart contracts for cold wallet management to ban them.
In 2025, Hong Kong has awarded operational licenses to four crypto exchanges so far: Panthertrade, Yax, Bullish and BGE. In total, 11 crypto exchanges currently operate as authorized crypto exchanges in Hong Kong, as shown below.
A list of licensed virtual asset trading platforms. Source: Hong Kong SFC
Related: animoca and Standard Chartered Form Stablecoin Venture in Hong Kong
Hong Kong aims to become a crypto hub
Hong Kong is leveraging its position as a financial hub to develop a strict cryptographic regulatory framework to support the crypto industry. The strategy already has fruit, with CMB International Securities Limited (one of China’s top banks), a subsidiary of China’s Merchant Bank (CMB), recently launched a crypto exchange in Hong Kong.
Hong Kong’s regulators are also aiming to establish a robust Stablecoin regulatory base as Hong Kong’s financial department established its regulatory framework for Stablecoin issuers earlier this month. This framework was tough enough to have a negative impact on some local businesses.
Similar to Crypto Exchange rules, with the introduction of the new Stablecoin framework, related local businesses posted double-digit losses on August 1st. Analysts at the time described the sale as a sound revision as it turned out that the requirements for Stablecoin issuers were more stringent than expected.
magazine: Hong Kong’s Stablecoin Frenzy, Pokémonon Solana: Asia Express
