Bitget has made the decision to give up on obtaining a Hong Kong Virtual Asset Trading Platform (VATP) license. The cryptocurrency industry is ablaze with excitement over this decision, which represents Bitget’s recalibrating of its market approach in reaction to changing business and market circumstances.
Bitget’s Manoeuvre Change
On November 13, Bitget made their official pivot announcement, stating that BitgetX, its Hong Kong business, will shut down by December 13, 2023. This action marks Bitget’s departure from the Hong Kong market, as the company is forced to shut its regional operations due to a lack of a VATP license.
As a result, before the deadline, users are asked by the corporation to remove their cryptocurrency holdings from BitgetX. The BitgetX website will go offline after December 13, making it impossible for customers to view or manage their assets on the platform.
Importantly, this revelation fits in with a larger trend in the cryptocurrency space, where exchanges are forced to quickly adjust as regulatory environments change all the time. The decision by Bitget to cease operations and forego applying for the VATP license highlights the difficulties and complications faced by cryptocurrency exchanges when traversing various nations’ regulatory regimes.
Consequences for Market and Users
Because trading has stopped and only withdrawal operations are still operational, Bitget users will need to immediately redirect their attention to withdrawing their assets as a result of this change. In addition, the exchange has not taken on new users since November 13, demonstrating its dedication to a seamless and well-organized departure from the Hong Kong market.
Furthermore, this withdrawal takes place in the same context as OSL, another cryptocurrency exchange licensed in Hong Kong, which announced on the same day that it would be suspending stock market operations.
The picture of the Hong Kong cryptocurrency industry is further complicated by this concurrent development, which may indicate changes in the commercial and regulatory climate of the area.