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On Friday, crypto exchange OKX announced that it has retracted its application for a Virtual Asset Service Provider (VASP) license in Hong Kong and will discontinue trading services for local residents.
OKX has joined Gate.io’s Hong Kong affiliate, HKVAEX, and Huobi HK in recently withdrawing their VASP applications from the Hong Kong Securities and Futures Commission. The company stated that this decision was made after “careful consideration” of its business strategy, although no additional details were provided.
OKX Withdraws Application and Halts Centralized Exchange Services in Hong Kong
In accordance with local regulatory requirements, OKX will stop providing centralized crypto exchange services to residents of Hong Kong by May 31. The exchange assured users that their funds would remain secure; however, deposits made after this date may not be credited automatically, and any outstanding orders will be canceled.
Screenshot of OKX Announcement Source: OKX.com
Furthermore, any open orders by the end of May will be canceled, and the funds will be moved to the respective OKX account balances. Customers have until August 31, 2024, to transfer their assets to self-custody wallets or accounts on other third-party platforms.
After the August deadline, users will no longer be able to initiate direct withdrawals or transfers, and any remaining balances will be classified as unclaimed property according to OKX’s terms of use.
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Despite the discontinuation of its centralized exchange services, OKX reminded customers that its OKX Web3 self-custodial wallet will still be accessible to local users and will not be impacted by this decision.
OKX Withdraws Application in Response to Hong Kong’s Cryptocurrency Licensing Requirements
In December 2022, Hong Kong’s Legislative Council approved an amendment that established a licensing framework for cryptocurrency service providers, with the new regulations taking effect in June 2023.
Consequently, the Hong Kong Securities and Futures Commission (SFC) required all local crypto exchanges to obtain an operational license. Exchanges that did not apply for a license were mandated to cease their services by May 31, 2024.
OKX initially filed its VASP application with the Hong Kong Securities and Futures Commission (SFC) on November 16.
Numerous other global exchanges have sought these retail trading licenses. The SFC has been evaluating applications from 20 crypto firms, including notable entities such as OKX, Bybit, Bullish, and Crypto.com.
Despite its withdrawal from Hong Kong, OKX has remained active in other regions. In January, the exchange secured a VASP license in Dubai and has recently broadened its services to Turkey and Australia.
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