BitMart Withdraws Hong Kong VASP License Amid Strict Regulations
BitMart has withdrawn its Hong Kong VASP license application, joining other major crypto exchanges that pulled back under the Securities and Futures Commission’s stringent regulations. The Hong Kong VASP license requires exchanges to hold liquid assets covering 12 months of operating expenses, a minimum HKD 5 million in paid-up share capital and strict custody rules, including storing 98% of client assets in whitelisted cold wallets, robust key management, and insurance covering all hot wallet holdings and at least half of cold storage assets. New custody rules also ban smart contracts for cold-wallet management. To date, only four platforms—PantherTrade, YAX, Bullish and BGE—have secured VASP licenses. Hong Kong’s recent stablecoin framework and custodial regulations aim to strengthen market integrity, but the high compliance costs and operational barriers may reduce platform diversity and local trading volumes.
Neutral
With no direct impact on a specific cryptocurrency token, BitMart’s withdrawal from the Hong Kong VASP license process is unlikely to drive significant price movements in any single asset. In the short term, the decision underscores regulatory pressure on crypto exchanges but does not alter trading conditions for existing tokens. Over the longer term, stricter compliance requirements may limit market diversity and liquidity in Hong Kong, potentially dampening trading volumes but not directly affecting the price of any particular coin.