Crypto exchange BitMart has withdrawn its application for a virtual asset service provider (VASP) license in Hong Kong, as noted by the Securities and Futures Commission (SFC). This decision follows a trend of similar withdrawals by other crypto platforms, including some major exchanges. Hong Kong's regulators have enforced rigorous licensing requirements for any centralized crypto platform operating in the region, such as maintaining liquid assets to cover 12 months of operating expenses and securing clients' assets largely in cold storage. Recent reforms also required that 98% of client assets must be stored offline, and strict insurance and key management protocols are implemented. By 2025, Hong Kong had licensed four crypto exchanges, amidst a growing and stringent regulatory environment aimed at solidifying its position as a financial hub. The new regulatory framework also attracted significant financial institutions, signaling an ongoing shift in the local cryptocurrency landscape.

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