The global cryptocurrency exchange OKX has decided to halt its application for a Virtual Asset Service Provider (VASP) license in Hong Kong. This decision comes as part of a broader move by crypto firms to retract their VASP applications following regulatory changes in the region. As a result, OKX will stop offering centralized trading services to residents of Hong Kong by the end of May 2024.
OKX reassures its customers that their funds remain secure, highlighting that there will be no disruption to withdrawal services until the cut-off date of May 31, 2024. Customers will still have the capability to withdraw their assets even after this date. However, OKX advises against making deposits post-May as these will be subject to the terms of unclaimed property under the company’s policy.
This move by OKX mirrors actions taken by other exchanges in the area, such as Gate.io’s Gate.HK, the Binance-affiliated HKVAEX, and Huobi HK’s HTX, which have also recently pulled their VASP applications. This trend follows the Legislative Council’s amendment passed in December 2022, paving the way for a new licensing regime that took effect in June 2023.
Despite withdrawing from centralized trading in Hong Kong, OKX will continue to offer Web3 services in the region. These services include self-hosted wallets, which will remain accessible to Hong Kong users. This strategy aligns with the growing focus on decentralized financial services within the cryptocurrency sector, offering users continued access to innovative and autonomous financial tools.