Crypto exchange Bitget pulls out of Hong Kong, stops pursuing licence, months after launching new platform

The cryptocurrency exchange Bitget has announced that it will not continue its efforts to obtain a license in Hong Kong and will completely withdraw from the city. This decision comes just a few months after they launched BitgetX, a platform designed to meet Hong Kong's virtual asset regulations. Bitget will shut down BitgetX on December 13 and then leave the Hong Kong market permanently. The company, which is five years old and based in Singapore, is the 12th largest in the world for trading cryptocurrencies, as ranked by CoinGecko.

Hong Kong had been trying to attract cryptocurrency businesses by introducing a new licensing system that would allow these exchanges to serve everyday investors. Bitget initially aimed to comply with these regulations by creating BitgetX. However, due to business and market factors, they've now asked users to withdraw their funds from the platform before it closes. The reasons for Bitget's sudden departure have not been disclosed, and there are unconfirmed reports that Bitget has invested in OSL, a licensed crypto exchange in Hong Kong.

Bitget's exit is a setback for Hong Kong's ambition to become a leading cryptocurrency hub. The city's efforts are hampered by high costs of regulatory compliance and a loss of public trust in cryptocurrencies due to a scandal involving the JPEX platform. To date, only five companies have applied for the new virtual asset license from Hong Kong's Securities and Futures Commission. The interest in the licensing scheme has been primarily from exchanges connected to Hong Kong and China, such as OKX and HTX. Binance, the largest exchange globally, has not commented on obtaining a license but is associated with HKVAEX, which is seeking one.