OKX Withdraws VASP License Application from Hong Kong

OKX, a prominent cryptocurrency exchange, has announced its decision to withdraw its Virtual Asset Service Provider (VASP) license application from Hong Kong. This strategic move, detailed in a notice on OKX’s blog, aligns with the company’s revised business strategy, although specific reasons were not disclosed.

As a consequence, OKX will cease its centralized crypto exchange services for Hong Kong residents effective May 31, adhering to local regulatory mandates. The exchange has assured users that their funds are secure, yet deposits made post-May 31 might not be automatically credited, and any open orders will be canceled. Withdrawals for Hong Kong residents will be supported until August 31, after which any remaining balances will be classified as “unclaimed property” per the platform’s terms.

OKX had initially submitted its VASP application to the Hong Kong Securities and Futures Commission (SFC) on November 16. The decision to withdraw this application has been verified by the SFC’s official website. A statement on OKX’s blog emphasized the regulatory deadline: “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.”

Despite this, OKX has reassured customers that its OKX Web3 self-custodial wallet, which operates independently from its centralized exchange services, will remain accessible to users in Hong Kong.

This decision follows the implementation of new licensing regulations by Hong Kong’s Legislative Council in December 2022, prompting several crypto exchanges, including Gate.HK and Huobi HK, to retract their VASP license applications. Meanwhile, OKX is broadening its footprint with new licenses and services in regions such as Dubai, Turkey, and Australia.

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