Crypto exchange Bitget's Hong Kong unit will halt operations on Dec. 13 after deciding not to apply for a local crypto license, the firm announced Monday.

BitgetX HK started up in April for spot trading and peer-to-peer (P2P) transfers, but users will be allowed only to withdraw assets from now until the platform shuts down in December. It no longer intends to apply for a Hong Kong crypto license, according to the announcement.

"It is with a heavy heart that we inform you that due to business and market-related considerations, we have decided not to apply for a Virtual Asset Trading Platform (VATP) license in Hong Kong ... At the same time, Bitgetx.hk will permanently withdraw from the Hong Kong market," the firm said.

Hong Kong in June opened a new licensing regime for crypto asset service providers that also allowed for retail trading. Crypto firms like Hashkey and SEBA recently obtained approval under the new Securities and Futures Commission (SFC) regime.