BitMart withdrew its application for a Hong Kong virtual asset service provider license, joining other major exchanges that pulled submissions as the SFC enforces high capital, strict custody rules and cold-storage limits. The withdrawal underscores regulatory pressure and market recalibration in Hong Kong’s crypto licensing regime.
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BitMart withdrew its Hong Kong licence application amid strict SFC rules
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Licensing demands include 12 months of liquid operating capital, HKD 5 million paid-up share capital and 98% cold storage for client assets.
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As of 2025, Hong Kong has licensed 11 exchanges; four were granted operational licenses this year (PantherTrade, YAX, Bullish, BGE).
BitMart Hong Kong withdrawal: BitMart withdrew its Hong Kong licence application amid strict SFC rules — read latest regulatory impact and next steps.
What did BitMart do and why did it withdraw its Hong Kong licence application?
BitMart withdrew its application for a Hong Kong virtual asset service provider license after the Securities and Futures Commission (SFC) returned the filing. The move follows heightened regulatory requirements in Hong Kong, including capital, custody and insurance conditions that have prompted several exchanges to pull or abandon submissions.
How many exchanges have withdrawn or been affected by the SFC rules?
Multiple major trading platforms have withdrawn applications or had filings returned in 2024–2025. Notable examples include Bybit, OKX and Gate, which withdrew around May 2024. The pattern reflects widespread reassessment of compliance costs versus local market access.
BitMart withdrew its application for a virtual asset service provider license in Hong Kong, joining several other major exchanges.
Crypto exchange BitMart withdrew its application for a virtual asset service provider license in Hong Kong, according to the Securities and Futures Commission (SFC) list of virtual asset trading platforms.
The SFC recorded that BitMart formally withdrew its application on Thursday. The decision follows similar actions by other platforms that reassessed their plans amid stringent licensing criteria.
What are the key Hong Kong licensing requirements for centralized crypto platforms?
Hong Kong requires centralized crypto platforms operating locally or marketing to local investors to hold an SFC licence. Core conditions include maintaining liquid assets equal to at least 12 months of operating expenses and at least HKD 5 million in paid-up share capital.
Additional custody and operational rules demand that 98% of client assets remain in cold storage, transfers be limited to whitelisted addresses, strict key-management processes be in place, and insurance cover hot and cold holdings to specified minimums.
How have recent stablecoin and custody rules tightened the landscape?
New rules for crypto custody and stablecoin issuance further tightened controls. Authorities banned reliance on smart contracts for cold wallet management and set precise insurance and governance expectations, which increased compliance burdens for some firms and triggered market corrections among local companies.
Which exchanges are licensed and how does BitMart’s withdrawal fit the trend?
To date in 2025 Hong Kong granted operational licenses to PantherTrade, YAX, Bullish and BGE. In total, 11 exchanges currently operate as licensed platforms in Hong Kong. BitMart’s withdrawal aligns with other major platforms opting out or delaying market entry amid cost‑benefit reassessments.
How is Hong Kong positioning itself as a crypto hub despite stricter rules?
Hong Kong aims to balance rigorous oversight with market growth by creating a clear regulatory framework for exchanges and stablecoins. The approach is intended to attract institutional participation, as evidenced by legacy financial institutions and subsidiaries launching local offerings under the new regime.
Regulators frame higher standards as a way to build long‑term trust and reduce fraud risk, positioning Hong Kong as a compliant, institution-friendly crypto center.
Comparison: Key SFC licensing requirements vs. typical international standards
| Requirement | Hong Kong (SFC) | Typical International Standard |
|---|---|---|
| Paid-up capital | HKD 5 million minimum | Varies; often lower or phased |
| Reserve liquidity | 12 months operating expenses | Commonly 6–12 months or variable |
| Custody | 98% cold storage; whitelisting | Cold storage encouraged; fewer strict thresholds |
| Insurance | 100% hot, 50% cold coverage targets | Often recommended but not mandated |
Frequently Asked Questions
Why did BitMart withdraw its application for a Hong Kong licence?
BitMart withdrew amid stringent SFC requirements for capital, custody and insurance that increase compliance costs and operational complexity. Several exchanges reassessed market entry plans for cost and strategic reasons.
Does withdrawal mean BitMart will stop serving Hong Kong users?
Withdrawal of the licence application does not automatically confirm service changes; it reflects the firm’s decision to pause or redirect regulatory engagement. Market access and user policies depend on the exchange’s subsequent actions and local enforcement.
Key Takeaways
- Regulatory pressure: SFC rules are strict and led several exchanges to withdraw applications.
- High compliance bar: Capital, liquidity and custody mandates set Hong Kong apart from many jurisdictions.
- Strategic outcome: Withdrawals signal recalibration; licensed exchanges and institutional entrants still position Hong Kong as a regulated crypto hub.
Conclusion
BitMart’s withdrawal of its Hong Kong licence application underscores the SFC’s high regulatory standards and the resulting market responses. While stricter rules have prompted some exits, Hong Kong continues to issue licences and aims to cultivate a secure, institutionally focused crypto market. Watch for further licensing updates and firm decisions.
