Crypto Exchange OKX Withdraws Hong Kong License Application

As an analyst with extensive experience in the crypto market and regulatory landscape, I’m concerned about OKX’s decision to withdraw its application for a digital asset service license in Hong Kong. This comes on the heels of other major exchanges, such as Huobi Hong Kong, making similar moves.

One of the major cryptocurrency exchanges, OKX, announced that they have retracted their application for offering digital asset services in Hong Kong.

The application for OKX HK’s Virtual Asset Service Provider (VASP) license with us has been reconsidered as part of our business planning, and we have chosen not to move forward with it at present. This information was shared on our website.

Beginning May 31st, the third-largest virtual asset exchange by volume, as reported by CoinGecko data, will cease offering centralized trading services in this region. Following this date, users can only process fund withdrawals.

Recently, several other applicants, among them Huobi Hong Kong, which is based in Hong Kong under the umbrella of HTX, have pulled back their applications from the Securities and Futures Commission.

As a financial analyst, I’ve been closely monitoring the developments within the cryptocurrency exchange industry. Notable players such as Crypto.com and Bullish, the parent company of CoinDesk, are presently undergoing regulatory review by the Securities and Futures Commission (SFC) in Hong Kong. To date, the SFC has granted licenses to merely two exchanges, with the latest approval taking place in 2022.