As an analyst with a background in regulatory compliance and experience in the cryptocurrency industry, I view OKX’s decision to withdraw its VASP license application and cease centralized trading services for Hong Kong residents as a prudent move in response to evolving regulatory requirements.
Starting from May 31, 2024, OKX announced that it will no longer provide centralized crypto trading services to Hong Kong residents due to regulatory obligations.
OKX carefully weighed their business strategy before deciding to withdraw their application for a Virtual Asset Service Provider (VASP) license. They have chosen not to disclose the particular reasons behind this choice.
OKX Retreats from Hong Kong
On Friday, OKX announced in an official blog post that customer funds are safe and their withdrawal services will carry on functioning regularly.
Starting from June 1, 2024, it will no longer be possible for clients residing in Hong Kong to trade or deposit funds on the platform. However, they can still withdraw their funds after May 31, 2024. It is essential to mention that OKX’s self-hosted wallet services in Web3 format will continue to be available to Hong Kong users and will not be subjected to this modification.
As a researcher studying the cryptocurrency market, I would advise you not to deposit any funds into your OKX account beyond a certain deadline. Any unfilled orders prior to that date will be automatically cancelled, and the associated funds will be credited back to your OKX account balance.
Based on a thorough evaluation of our company’s business plan, we have chosen to abandon the process of obtaining an VASP license for OKX HK at present. Consequently, starting from May 31, 2024 (Friday), OKX will no longer offer centralized virtual asset trading services to residents of Hong Kong in adherence with regulatory guidelines.
On November 16th, OKX applied for a virtual asset service provider (VASP) license from the Hong Kong Securities and Futures Commission. However, according to the SFC’s website, the company withdrew its application on May 24th without providing any explanation for this decision.
As a researcher investigating the recent developments in the cryptocurrency industry, I’ve come across some noteworthy news. OKX isn’t alone in their decision to withdraw an application for a Virtual Asset Trading Platform (VASP) license with the Securities and Futures Commission (SFC). In fact, other applicants such as HTX Hong Kong and Huobi Hong Kong have also taken this step earlier this month.
As a analyst, I’ve observed that just two cryptocurrency exchanges have been given the green light to operate legally by the regulator up to this point. Specifically, OSL Exchange’s OSL Digital Securities Limited and HashKey Exchange’s Hash Blockchain Limited are the named entities that have successfully obtained the necessary licenses.
Indian Exit
Two months after notifying its Indian users that it would be discontinuing its services due to local regulations, OKX has now implemented this decision. On March 21st, the cryptocurrency exchange sent an email urging users in India to wind up their transactions by the end of April.
Due to intensifying investigations and restrictions imposed by the Indian authorities on international cryptocurrency platforms, OKX made the decision to take action. Consequently, some companies have had to shut down their operations within India.
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2024-05-25 22:44