Bitmart extracts the application for Hong Kong Vasp license

Crypto Exchange Bitmart withdrew his application for a virtual asset services provider license in Hong Kong.

According to him list From the virtual asset trade platforms maintained by the Hong Kong regulator, the Securities and Future Commission (SFC), Bitmart withdrew his application on Thursday.

This followed similar decisions from other cryptography trade platforms. Major Crypto Exchange Bybit applied last year, but withdrew his application at the end of May 2024. Similarly, OKX withdrew its application at the end of May, just like Gate.

As Cointegraph reported at that time, a wave of cryptography exchanges withdrew its applications before a deadline that saw the local regulator expel all platforms without a license. This was a consequence of strict requirements for local encryption exchanges.

Related: Hong Kong warns about the risk of fraud after the new Stablecoin rules

High requirements for Cryptography exchanges of Hong Kong

Hong Kong’s laws require that any centralized cryptographic platform that operates in its territory or marketing to local investors has a license for the SFC. License request Platforms to keep liquid assets equivalent to at least 12 months of operational expenses and maintain at least 5 million dollars from Hong Kong ($ 641,490) in paid social capital.

In addition, 98% of customer assets must remain in cold storage, and transfers are limited only to addresses with the white list. Regulators require strict key management, and insurance must cover 100% hot storage and 50% of cold storage holdings.

The new rules for encryption custody services approved earlier this month also hardly harden the controls and prohibition depending on intelligent contracts for cold wallet management.

In 2025, Hong Kong granted operational licenses to four encryption exchanges to date: Panthertrade, Yax, Bullish and BGE. In total, 11 encryption exchanges currently operate as license encryption exchanges in Hong Kong, as shown below.

Related: Encourage and standard stable stablcoin venture in Hong Kong

Hong Kong aims to become a cryptographic center

Hong Kong is developing its rigorous cryptographic regulatory framework to support a cryptographic industry, taking advantage of its position as a financial center. The strategy is already carrying its fruits, with CMB International Securities Limited, a subsidiary of China Merchants Bank (CMB), one of China’s main banks, which recently launched an exchange of cryptographic in Hong Kong.

The Hong Kong regulators also aim to establish a solid regulatory base of Stablecoin, with the Monetary Authority of Hong Kong that ended its regulatory framework for Stablecoin issuers earlier this month. This framework was also strict enough to negatively affect some local companies.

Like the encryption exchange rules, the introduction of the new Stablecoin framework led to the relevant local companies to publish two digit losses on August 1. Analysts at that time described the sale of sales as a healthy correction, since the requirements for Stablecoin emitters proved to be stricter than expected.