Spark Fintech withdraws application for Hong Kong VASP license

A well-known participant in the cryptocurrency exchange market, Bybit, She said today that its affiliate, Spark Fintech Limited, has chosen to withdraw its application to become a VASP (Virtual Asset Services Provider) licensee.

Spark Fintech only applied for the VASP application on January 31 this year. However, after rethinking and conducting a strategic assessment of the company’s objectives and Hong Kong’s regulatory environment, the company decided not to move forward.

For businesses involved in the cryptocurrency industry, Hong Kong VASP licenses are essential as they ensure compliance with the area’s strict regulations. These licenses come with stringent requirements to adhere to anti-money laundering (AML) and counter-terrorism (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 June 1, 2024 at 0:00 GMT+8. Customers are advised to remove any remaining cash following the guidelines provided to ensure a smooth transfer.

The company said Spark Fintech is committed to working with industry stakeholders and authorities to assist the development of Hong Kong as a cryptocurrency innovation hub to promote a sustainable cryptocurrency ecosystem.

Many well-known exchanges have recently withdrawn their claims, including Huobi HK, Gate.HK, HKVAEX and OKX.

Read also: Bybit presents the revolutionary resource management program

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