OKX announced last Friday that it had withdrawn its application for a VASP license in Hong Kong.
In a statement, the cryptocurrency exchange cited “careful consideration” of its business strategy as the motivation for its decision, without going into further detail as to why. OKX was unable to expand on its statement upon request from The Block.
In line with local regulatory requirements, OKX said it would discontinue its centralized cryptocurrency exchange services for Hong Kong residents by May 31.
Although the cryptocurrency exchange has tried to reassure users that their funds remain safe, deposits after this date may not be automatically credited and open orders will be cancelled. After May 31, the withdrawal feature will be the only option available to Hong Kong residents until August 31, after which any remaining balance will be considered “unclaimed property” under the platform’s terms, it added.
OKX submitted its VASP application to the Hong Kong Securities and Futures Commission on November 16, but withdrew it today without giving a reason for OKX’s withdrawal, as confirmed on the SFC website.
“Virtual asset trading platforms operating in Hong Kong that have not submitted their license applications to the SFC by February 29, 2024, will be required to close their operations in Hong Kong by May 31, 2024. Investors using these platforms should prepare early,” the site states.
The cryptocurrency exchange also reminded customers that apart from the centralized exchange services, the OKX Web3 self-managed wallet is not affected and will remain available to local users.
OKX joins other cryptocurrency companies in withdrawing Hong Kong VASP application
Hong Kong’s Legislative Council has passed amendments introducing a licensing regime for cryptocurrency service providers in December 2022, with new regulations starting in June 2023.
Many global exchanges have applied for these retail trading licenses. The SFC has been reviewing applications from 20 cryptocurrency companies, including OKX, Bybit, Bullish and Crypto.com.
However, OKX recently joined other cryptocurrency exchanges to withdraw their applications to local regulators, including Gate.io’s Hong Kong affiliate Gate.HK, Binance-linked HKVAEX and HTX’s Huobi HK.
Last January, OKX obtained a VASP license in Dubai and recently opened cryptocurrency exchange services in Turkey and Australia.
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