A well-known participant in the cryptocurrency exchange market, Bybit, said today that its affiliate, Spark Fintech Limited, has chosen to withdraw its application to become a Virtual Asset Services Provider (VASP) license holder.
Spark Fintech applied for the VASP application on January 31 this year only. However, after some rethinking and conducting a strategic assessment of the company’s goals and Hong Kong’s regulatory environment, the firm has decided not to move forward.
For businesses involved in the cryptocurrency space, Hong Kong VASP licenses are essential since they guarantee adherence to the strict regulations in the area. These licenses come with strict requirements for adhering to anti-money laundering (AML) and counter-terrorist financing (CTF) protocols to maintain investor confidence.
All products and services on Spark Fintech’s Hong Kong platform will be temporarily suspended, except customer withdrawals, starting on June 1, 2024, at 0:00 GMT+8. Customers are urged to remove their remaining cash following the given guidelines to guarantee a seamless transfer.
The company said that Spark Fintech is dedicated to working with industry stakeholders and authorities to assist Hong Kong’s development as a hub for cryptocurrency innovation to promote a sustainable cryptocurrency ecosystem.
Many well-known exchanges have recently withdrawn their applications, including Huobi HK, Gate.HK, HKVAEX, and OKX.
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