OKX withdraws VASP license application from Hong Kong

The
well-known
crypto
exchange
OKX
announced
its
decision
to
withdraw
its
Virtual
Asset
Service
Provider
(VASP)
license
application
from
Hong
Kong.

In
a

notice
posted
on
OKX’s
blog,
the
exchange
cited
careful
consideration
of
its
business
strategy
as
the
inspiration
for
the
decision,
though
it
did
no
provide
specific
details.
As
a
result,

OKX
will
halt
its
centralized
crypto
exchange
services
for
Hong
Kong
residents
by
May
31,
in
compliance
with
local
regulatory
requirements.

The
exchange
reassured
users
that
their
funds
remain
safe.
However,
it
noted
that
deposits
made
after
May
31
may
not
be
automatically
credited,
and
open
orders
will
be
canceled.
Post-May
31,
the
only
available
function
for
Hong
Kong
residents
will
be
withdrawals,
which
will
be
supported
until
August
31.
After
this
date,
any
remaining
balances
will
be
deemed
“unclaimed
property”
under
the
platform’s
terms.

OKX
had
initially
submitted
its
VASP
application
to
the
Hong
Kong
Securities
and
Futures
Commission
on
November
16
but
decided
to
withdraw
it,
as
confirmed
by
the

SFC’s
website.

“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
blog
said.

Continuation
of
OKX
Web3
services

OKX
also
reminded
customers
that
its

OKX
Web3
self-custodial
wallet,
which
is
separate
from
its
centralized
exchange
services,
will
remain
unaffected
and
available
to
local
users.

Following
the
introduction
of
new
licensing
regulations
by
Hong
Kong’s
Legislative
Council
in
December
2022,
OKX
and
several
other
crypto
exchanges,
like
Gate.HK
and
Huobi
HK,
have
withdrawn
their
applications
for
a
VASP
license
in
Hong
Kong.
This
action
comes
as
OKX
expands
its
operations
with
new
licenses
and
services
in

Dubai,

Turkey,
and
Australia.