Crypto exchange BitMart has withdrawn its application for a license in Hong Kong, alongside several other platforms amid the territory's stringent regulatory environment.
Withdrawal from Licensing
The Hong Kong Securities and Futures Commission (SFC) confirmed that BitMart has withdrawn its application for licensing. In May 2024, major platforms such as Bybit, OKX, and Gate also retracted their applications ahead of the deadline imposed on all unlicensed platforms. Since the regime opened in June 2023, over 20 exchanges initially filed applications, but nearly half have since withdrawn as compliance demands increased.
Licensing Requirements
Hong Kong law requires any centralized crypto exchange operating in the city or marketing to residents to hold an SFC license. The regulations impose stringent conditions: firms must maintain liquid assets equivalent to at least one year of operational costs, hold a minimum paid-up capital of HK$5 million (approximately $641,000), and ensure 98% of client assets are kept in cold storage. Transfers are restricted to whitelisted addresses, with mandatory insurance for both hot and cold wallets.
State of Crypto Trading in Hong Kong
In 2025, the SFC awarded licenses to only four platforms — PantherTrade, YAX, Bullish, and BGE. Currently, 11 exchanges operate with regulatory approval in Hong Kong. Despite withdrawals from some global players, Hong Kong continues to attract new entrants, such as CMB International Securities, which recently launched a crypto exchange in the city. HashKey Exchange, backed by Wanxiang, reported a 300% surge in trading volumes since obtaining its license in late 2023.
The withdrawal of applications from platforms like BitMart indicates the growing challenge of complying with stringent regulations in Hong Kong, even as the market shows positive trends with the entry of new companies.
