BitMart pulls Hong Kong VASP application

Crypto exchange BitMart withdrew its application for a virtual asset service provider license in Hong Kong.

According to the of virtual asset trading platforms maintained by the Hong Kong regulator, the Securities and Futures Commission (SFC), BitMart withdrew its application on Thursday.

This followed similar decisions by other crypto trading platforms. Major crypto exchange but withdrew its application at the end of May 2024. Similarly, OKX withdrew its application at the end of May, .

As , a wave of withdrew their applications ahead of a deadline that saw the local regulator expel all unlicensed platforms. This was a consequence of stringent requirements for local crypto exchanges.

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High requirements for Hong Kong crypto exchanges

require any centralized crypto platform operating on its territory or marketing to local investors to be licensed by the SFC. Licensing platforms to keep liquid assets equivalent to at least 12 months of operating expenses and maintain at least 5 million Hong Kong dollars ($641,490) worth of paid-up share capital.

Furthermore, 98% of client assets must remain in cold storage, and transfers are limited to whitelisted addresses only. Regulators require strict key management, and insurance must cover 100% of hot storage and 50% cold storage holdings.

New rules for crypto custody services approved earlier this month also for cold wallet management.

In 2025, Hong Kong awarded operational licenses to four crypto exchanges to date: , Bullish and BGE. In total, 11 crypto exchanges currently operate as licensed crypto exchanges in Hong Kong, as shown below.

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Hong Kong aims to become a crypto hub

Hong Kong is developing its rigorous crypto regulatory framework to support a crypto industry, leveraging its position as a financial hub. The strategy is already bearing its fruits, with CMB International Securities Limited, a subsidiary of the China Merchants Bank (CMB) — one of China’s top banks — .

Hong Kong regulators also aim to establish a solid stablecoin regulatory base, with the Hong Kong Monetary Authority having earlier this month. This framework was also stringent enough to negatively impact some local firms.

Just like the crypto exchange rules, the introduction of the new stablecoin framework led to relevant local companies . Analysts at the time described the sell-off as a healthy correction, as the requirements for stablecoin issuers proved to be more stringent than expected.

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