BitMart Withdraws Hong Kong License Application Amid Crypto Exchange Exodus

BitMart Withdraws Application: Crypto exchange BitMart has withdrawn its application to operate as a licensed virtual asset service provider in Hong Kong, joining other platforms like Bybit and OKX that have also pulled their applications amid strict regulatory requirements.

Strict Regulatory Framework: Hong Kong's Securities and Futures Commission (SFC) mandates that centralized crypto exchanges must hold a license, with stringent conditions including high liquidity requirements and a 98% cold storage rule for client assets.

Market Impact and Adjustments: The new regulations have led to significant market adjustments, with local crypto firms experiencing steep losses and Hong Kong-listed crypto stocks declining following the announcement of stricter oversight measures.

Continued Interest Despite Withdrawals: Despite some global exchanges withdrawing, Hong Kong remains attractive for new entrants, as evidenced by CMB International Securities launching a new crypto exchange and HashKey Exchange reporting increased trading volumes post-licensing.