Digital asset exchange, Bitget, has recently announced its planned exit from the Hong Kong market, generating concern amongst investors and users alike. The company, which has been operating locally as BitgetX.hk, will be closing its doors on December 13, 2023, citing undisclosed business concerns.
Reasons for the Exit
Bitget has abandoned its plans to obtain a Virtual Asset Trading Platform (VATP) license in Hong Kong due to unfavorable business-related conditions. This decision means that the company will be unable to offer crypto and financial services in the jurisdiction.
The company issued a press release addressing potential user questions and concerns following the announcement. It emphasized the importance for all users to fully withdraw their assets before the December 13 deadline, as the website will no longer be accessible after that date. Failure to withdraw funds will result in the loss of those assets, unless there is a subsequent announcement made by Bitget.
Implications for Users
From this point forward, users will no longer be able to engage in trading activities on the platform, and Bitget will not be accepting any new users. The company has assured its users that it will provide assistance and support in facilitating the withdrawal process.
It is important to note the significance of this development in the context of Hong Kong’s digital asset landscape. Hong Kong has gained recognition as a major hub for digital assets, attracting substantial investments and implementing progressive local regulations. Many digital asset and web3 firms have expanded their operations in the country, serving both retail and wholesale clients.
Bitget had previously expressed intentions to expand its presence in Hong Kong, as evidenced by its membership in the Hong Kong Virtual Asset Consortium (HKVAC). This consortium provides rating services for web3 firms, among other activities. In line with its commitment to foster a compliant and secure digital asset ecosystem, Bitget had aimed to obtain the VATP license, while actively promoting the growth of the Web3 industry in Hong Kong.
The exit of Bitget from the Hong Kong market has raised concerns and prompted speculation. Observers have drawn parallels between this development and the suspension of stock market trading by OSL, another digital asset exchange licensed in Hong Kong. There have been speculations that Bitget may have had an investment in OSL, particularly since reports of the exchange being up for sale surfaced in October.
