Spark Fintech Limited, a subsidiary of the crypto exchange Bybit, has withdrawn its application to the Securities and Futures Commission (SFC) in Hong Kong.

Effective 1 June 2024, Spark Fintech will suspend all products and services on its Hong Kong platform except for customer withdrawals. Affected clients are advised to withdraw their remaining funds as soon as possible following the provided instructions.

Many crypto firms are withdrawing their applications for VATP licenses in Hong Kong. Recent withdrawals include Willows Asia Technology Company Limited (IBTCEX), QuanX Lab Limited, and HBGL Hong Kong Limited (Huobi HK). Other firms, such as AMMBR (HK) LIMITED, BitHarbour (Hong Kong) Limited, Meex Digital Securities Limited, BX SERVICES LIMITED (HKVAEX), and OKX Hong Kong, have also withdrawn their applications.

Only OSL Digital Securities Limited and Hash Blockchain Limited have been awarded digital asset licenses in Hong Kong. Meanwhile, 17 applicants, including global platforms like Matrixport and Crypto.com, are still pursuing VATP licenses.

The SFC has stipulated that virtual asset trading platforms must submit their license applications by 29 February 2024 or cease operations by 31 May 2024. Investors using these platforms should prepare for potential disruptions.

Spark Fintech will continue to engage with regulators and industry stakeholders to support the development of a secure and compliant crypto ecosystem in Hong Kong.

Featured image credit: Edited from Freepik