Review of Bitmart applications for VAST license continued a series of refusal of digital trading platforms from registration in Hong Kong because of the new SFC requirements to the crypto participants. The formal reason for the recall of the Bitmart application was insurmountable disagreements of the exchange administration and local regulatory authorities.
The new SFC requirements involve the storage of 98% of customer assets in a cold wallet and introduce the restriction of transfers only to approved addresses. In addition, crypto platforms are required to maintain liquidity on their balance sheet covering the exchange expenses of the exchange in 12 months.
SFC prohibits the use of smart contracts for controlling cold wallets. In addition, the requirement of the minimum authorized capital of 5 million Hong Kong dollars ($ 641,000) is introduced, as well as compulsory insurance of 100% of the hot wallet assets and 50% of the cold wallet assets.
Earlier, for similar reasons, the BYBIB, OKX, HKVAEX and Gate cryptocurrency exchanges recalled their applications.
Source: Bits
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