The well-known cryptocurrency exchange OKX declared that it will withdraw its application for a Hong Kong Virtual Asset Service Provider (VASP) license.
The exchange gave no specifics in its notification on OKX’s blog, but stated that it decided after considering its business plan. In accordance with local regulatory regulations, OKX will thus cease providing centralized crypto exchange services for residents of Hong Kong by May 31.
Users were informed by the exchange that their money was still secure. According to the statement, open orders will be cancelled, and deposits placed after May 31 might not be immediately credited.
Withdrawals will be the only function accessible to residents of Hong Kong after May 31 and will be provided through August 31. The terms of the platform state that any amounts left over after this date will be considered “unclaimed property.”
According to the SFC website, OKX opted to withdraw its VASP application after submitting it to the Hong Kong Securities and Futures Commission on November 16. The blog said:
“Virtual asset trading platforms operating in Hong Kong which have not submitted their license applications to the SFC by February 29 2024 must close down their businesses in Hong Kong by May 31 2024. Investors using these platforms should make preparations early”
Continuation of OKX Web3 Services
OKX also informed clients that local users will still have access to its self-custodial OKX Web3 wallet, which is independent of its centralized exchange services, in the wake of the Legislative Council of Hong Kong’s December 2022 announcement of new licensing requirements.
OKX and several other cryptocurrency exchanges, including Gate.HK and Huobi HK, withdrew their applications for a VASP license in Hong Kong. This move coincides with OKX’s expansion of its business into Australia, Turkey, and Dubai, as well as additional licenses and services.
