OKX, one of the largest cryptocurrency exchanges globally, has decided to withdraw its application to operate in Hong Kong, marking a notable development in the regulatory environment.
In a recent announcement, OKX cited strategic considerations for its decision to withdraw its application for a virtual asset service provider (VASP) license in Hong Kong. The exchange emphasized that this move was based on careful consideration of business strategy.
As a result of this decision, OKX will cease providing centralized virtual asset trading services in Hong Kong until May 31. However, customers retain the ability to withdraw funds from the platform.
The withdrawal comes amid a trend of other applicants withdrawing their applications during the approval process. In particular, earlier this month, several applicants, including HTX’s Hong Kong subsidiary and Huobi Hong Kong, withdrew their applications to the Securities and Futures Commission.
The Securities and Futures Commission is currently reviewing license applications from a number of major cryptocurrency exchanges, including Bullish, owner of Crypto.com and CoinDesk. However, regulators have approved only two exchanges so far, with the most recent approval coming in 2022.
OKX’s decision to withdraw its application highlights the evolving and complex regulatory environment surrounding cryptocurrency exchanges. As the industry addresses these regulatory challenges, exchanges will need to carefully evaluate their strategies and adapt to ensure compliance and sustainability over the long term.
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