BitgetX, the Hong Kong division of Bitget, has made the surprising announcement that it will not be applying for a Virtual Asset Trading Platform (VATP) license in Hong Kong. Despite operating in the region for the past seven months, BitgetX has decided to immediately cease all trading activities and shut down its operations by December 13. While the platform users are still able to withdraw their assets before the website becomes inactive, this decision marks a significant shift in BitgetX’s strategy.
Business and Market Considerations
In a statement released on November 13, BitgetX stated that the decision not to apply for a VATP license in Hong Kong was driven by business and market-related considerations. The company expressed its regret in ending its operations in Hong Kong, stating, “It is with a heavy heart that we inform you that due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong.”
As part of their decision, BitgetX also announced their withdrawal from the Hong Kong market. The BitgetX website, www.BitgetX.hk, will cease operations from December 13, 2023. This unexpected move comes as a surprise, especially considering that Bitget had initially launched the BitgetX platform in an effort to comply with the regulatory demands of the Hong Kong authorities.
The users of BitgetX will still have the opportunity to withdraw their assets before the website becomes inactive in December. This gives users a window of time to transfer their funds to other platforms or wallets. However, the closure of BitgetX will undoubtedly inconvenience its users, who will have to find alternative options for their cryptocurrency trading activities.
Bitget’s Position
Bitget, one of the largest cryptocurrency exchanges with over 20 million users, had yet to respond to requests for additional commentary on this decision as of press time. This lack of communication leaves users and industry observers wondering about the underlying reasons behind Bitget’s move to shut down BitgetX in Hong Kong.
BitgetX’s unexpected decision to cease operations in Hong Kong and withdraw from the market raises questions about the challenges and considerations faced by cryptocurrency exchanges. As the industry continues to evolve and regulatory requirements become more stringent, we can expect to see more exchanges making similar choices based on their business and market circumstances. Users of BitgetX will need to adapt to this change and explore alternative options for their cryptocurrency trading needs.