OKX withdraws VASP license application in Hong Kong
Quick Take
- Crypto exchange OKX has withdrawn its VASP license application in Hong Kong and will cease to provide trading services to local residents by May 31.
- OKX joins Gate.io’s Hong Kong affiliate, HKVAEX and Huobi HK in recently withdrawing their VASP applications with the Hong Kong Securities and Futures Commission.
OKX announced it has withdrawn its VASP license application in Hong Kong on Friday.
In a statement, the crypto exchange cited “careful consideration” of its business strategy as the motivation for the decision without elaborating further on the reasons why. OKX was unable to expand on the statement when asked by The Block.
In accordance with local regulatory requirements, OKX said it will cease to centralized crypto exchange services to Hong Kong residents by May 31.
The crypto exchange sought to reassure users that their funds remained safe, however, deposits after this date may not be automatically credited, and open orders will be canceled. After May 31, the withdrawal function will be the only option available to Hong Kong residents until August 31, after which remaining balances will be deemed “unclaimed property” under the platform’s terms, it added.
OKX submitted its VASP application to the Hong Kong Securities and Futures Commission on Nov. 16 but withdrew today, as confirmed by the SFC’s website, without disclosing the reason for OKX’s withdrawal.
“Virtual asset trading platforms operating in Hong Kong which have not submitted their license applications to the SFC by 29 February 2024 must close down their businesses in Hong Kong by 31 May 2024. Investors using these platforms should make preparations early,” the site states.
The crypto exchange also reminded customers that its OKX Web3 self-custodial wallet, separate from its centralized exchange services, was not affected and would remain available to local users.
OKX joins other crypto firms in withdrawing their Hong Kong VASP applications
Hong Kong’s Legislative Council passed an amendment introducing the licensing regime for cryptocurrency service providers in December 2022, with the new rules commencing in June 2023.
Many global exchanges have applied for such retail trading licenses. The SFC had been reviewing applications from 20 crypto firms, including OKX, as well as Bybit, Bullish and Crypto.com.
However, OKX now joins other crypto exchanges in recently withdrawing their applications with the local regulator, including Gate.io’s Hong Kong affiliate Gate.HK, the reportedly Binance-linked HKVAEX and HTX’s Huobi HK.
In January, OKX obtained a VASP license in Dubai and also recently opened crypto exchange services in Turkey and Australia.
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