Crypto trade BitMart withdrew its utility for a digital asset service supplier license in Hong Kong.
According to the listing of digital asset buying and selling platforms maintained by the Hong Kong regulator, the Securities and Futures Commission (SFC), BitMart withdrew its utility on Thursday.
This adopted comparable selections by different crypto buying and selling platforms. Major crypto trade Bybit utilized final 12 months however withdrew its utility on the finish of May 2024. Similarly, OKX withdrew its utility on the finish of May, as did Gate.
As Cointelegraph reported on the time, a wave of crypto exchanges withdrew their functions forward of a deadline that noticed the native regulator expel all unlicensed platforms. This was a consequence of stringent necessities for native crypto exchanges.
Related: Hong Kong warns of fraud danger after new stablecoin guidelines
High necessities for Hong Kong crypto exchanges
Hong Kong legal guidelines require any centralized crypto platform working on its territory or advertising to native traders to be licensed by the SFC. Licensing requires platforms to maintain liquid belongings equal to at the least 12 months of working bills and preserve at the least 5 million Hong Kong {dollars} ($641,490) value of paid-up share capital.
Furthermore, 98% of consumer belongings should stay in chilly storage, and transfers are restricted to whitelisted addresses solely. Regulators require strict key administration, and insurance coverage should cowl 100% of sizzling storage and 50% chilly storage holdings.
New guidelines for crypto custody companies accredited earlier this month additionally additional tighten controls and ban counting on good contracts for chilly pockets administration.
In 2025, Hong Kong awarded operational licenses to 4 crypto exchanges so far: PantherTrade, YAX, Bullish and BGE. In whole, 11 crypto exchanges at the moment function as licensed crypto exchanges in Hong Kong, as proven beneath.
Related: Animoca and Standard Chartered type stablecoin enterprise in Hong Kong
Hong Kong goals to develop into a crypto hub
Hong Kong is growing its rigorous crypto regulatory framework to assist a crypto business, leveraging its place as a monetary hub. The technique is already bearing its fruits, with CMB International Securities Limited, a subsidiary of the China Merchants Bank (CMB) — one among China’s high banks — lately launching a crypto trade in Hong Kong.
Hong Kong regulators additionally goal to ascertain a stable stablecoin regulatory base, with the Hong Kong Monetary Authority having finalized its regulatory framework for stablecoin issuers earlier this month. This framework was additionally stringent sufficient to negatively impression some native companies.
Just just like the crypto trade guidelines, the introduction of the brand new stablecoin framework led to related native corporations posting double-digit losses on Aug. 1. Analysts on the time described the sell-off as a wholesome correction, as the necessities for stablecoin issuers proved to be extra stringent than anticipated.
Magazine: Hong Kong hoses down stablecoin frenzy, Pokémon on Solana: Asia Express
