Bybit, a well-known participant in the cryptocurrency exchange market, has announced through its affiliate, Spark Fintech Limited, the withdrawal of its application to secure a Virtual Asset Services Provider (VASP) license in Hong Kong. This decision was carefully considered after evaluating the company's objectives and the regulatory framework in Hong Kong.

For cryptocurrency businesses, obtaining a VASP license in Hong Kong is crucial as it ensures compliance with strict regulatory standards. These licenses mandate adherence to anti-money laundering (AML) and counter-terrorist financing (CTF) protocols to uphold the trust of investors.

Starting from June 1, 2024, at 0:00 GMT+8, all operations on Spark Fintech's Hong Kong platform, except for customer withdrawals, will be temporarily suspended. Customers are advised to follow provided guidelines to withdraw their remaining funds promptly in order to facilitate a smooth transition.

Spark Fintech has emphasized its commitment to collaborating with industry stakeholders and regulatory authorities to support Hong Kong's emergence as a center for cryptocurrency innovation and to foster a sustainable cryptocurrency ecosystem.

The decision to withdraw the VASP license application aligns with a trend seen in other prominent exchanges, including Huobi HK, Gate.HK, HKVAEX, and OKX, which have also opted to withdraw their applications for licensing in Hong Kong.