As the crypto market repairs to enter into the bull run phase, BitgetX.hk, crypto exchange Bitget’s Hong Kong unit has announced to halt operations. It stated that they had decided not to apply for a compliant cryptocurrency exchange license in Hong Kong.
BitgetX.hk halts operations
BitgetX in a note mentioned that after business and market related considerations they have made decision to permanently exit the Hong Kong market. Crypto reporter, Wu highlighted that there are market rumors circulating about BitgetX’s potential involvement. This involves acquisition or investment moves in OSL which is Hong Kong’s first licensed exchange.
According to reports, Hong Kong in June 2023 introduced a licensing framework for crypto asset service providers. This involves moves such as expanding to include retail trading. Major firms like Hashkey and SEBA have received approval under the new Securities and Futures Commission (SFC) regime.
SEBA is poised to offer services like over the counter (OTC) derivatives, advice, and account management. Amy Yu, the Asia-Pacific CEO of SEBA Hong Kong praised Hong Kong’s regulatory standards.
Bitcoin inclusion in investment immigration
Hong Kong is reportedly set to reintroduce its investment immigration program after an eight-year interruption. It is important to note that Bitcoin trading will be included on its licensed exchanges. The report added that the initiative targets high-net-worth individuals. The authority has made a $3.84 million entry threshold for potential investors.
The recent strategic moves made by Hong Kong depict its commitment to regain its status as a premier financial center by integrating cutting edge fintechs. However, the inclusion of Bitcoin into the investment immigration scheme reflects the city’s recognition of the emerging role of digital assets in global finance and wealth accumulation as well.
JPMorgan’s recent research report warns of an overheated rally in the crypto market. It attributed the surge to the sentiments surrounding potential spot Bitcoin ETF approvals. The bank highlighted that the bullish sentiments emerging from expectations of a potential ETF approval would attract new capital. This eventually signals a victory for the crypto industry. However, this could also be possible beginning of softening the U.S. Securities and Exchange Commission’s stance.