A ripple effect in Hong Kong’s crypto market as BitgetX abandon its license plan

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In a surprising turn of events, cryptocurrency trading platform BitgetX has decided to abandon its plans to secure a Virtual Asset Trading Platform (VATP) license in Hong Kong. The decision, announced officially on November 13, has sent shockwaves through the crypto community as BitgetX’s Hong Kong division prepares to cease operations by December 13, 2023.

The company, a major player in the global crypto exchange scene, cited business and market-related considerations for its withdrawal from the Hong Kong market. BitgetX had initially expressed a commitment to obtain the VATP license in accordance with Hong Kong’s Securities and Futures Commission’s new crypto framework, which came into effect in June 2023.

As a result of the decision not to pursue the VATP license, BitgetX users are urged to withdraw their crypto assets from the platform before the looming December 13 deadline. The company has emphasized that after this date, the BitgetX website will become inaccessible, rendering users unable to manage or access their assets on the platform.

In a further blow to its user base, BitgetX has halted new user registrations effective November 13. The exchange clarified that only asset withdrawals will be permitted, and trading activities will be suspended immediately. This abrupt move has left many users scrambling to secure their assets and find alternative platforms for their cryptocurrency trading needs.

The unexpected withdrawal of BitgetX from the Hong Kong market is not an isolated incident in the region. OSL, one of the pioneers in acquiring a Hong Kong crypto license, announced the suspension of stock market trading on the same day. The Stock Exchange of Hong Kong halted trading of OSL shares at the request of its operator, BC Technology.

Rumors have circulated in the industry suggesting a potential connection between BitgetX and OSL. Although unconfirmed, there are reports indicating that Bitget may have acquired or invested in the OSL business. This speculation gained traction following BC Technology’s contemplation of selling the OSL exchange for a substantial sum, reportedly around $1 billion Hong Kong dollars or $128 million.

Adding to the intrigue, on November 14, OSL revealed a $90 million stock acquisition by cryptocurrency firm BGX. The developments surrounding BitgetX and OSL have sparked curiosity and speculation within the crypto community about the interconnected dynamics of the Hong Kong crypto market.

As the crypto landscape in Hong Kong undergoes these unexpected shifts, industry participants are left wondering about the broader implications for the regulatory environment, market stability, and the future of cryptocurrency exchanges in the region. BitgetX’s exit serves as a stark reminder of the volatile nature of the crypto industry and the challenges faced by companies navigating the evolving regulatory landscape.

(Source: Helen Partz | CoinTelegraph | Xinmei Shen | SCMP)

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