OKX Nears Hong Kong Crypto License Approval by March 2024

OKX has entered the concluding phase before obtaining a Hong Kong virtual asset service provider license (VASP). The crypto exchange anticipates ultimate VASP license approval by March 2024.

Li Zhikai, the global chief commercial officer of OKX, stated in an interview that the company is actively engaged in a dialogue with the banks and is presently awaiting the group’s license and business launch.

The cryptocurrency exchange has begun preparatory work, including technology anchoring. Hong Kong became crypto-friendly in 2023 and announced a licensing system for crypto exchanges offering their services to retail customers.

Although more than eighty crypto firms initially expressed interest in establishing offices in the country, only a few crypto platforms, including HashKey and OSL, obtained the required license to launch retail crypto trading services.

HashKey began providing Hong Kong consumers with retail crypto trading services on August 28. To reduce the risk associated with investing in new crypto tokens, the country’s regulatory body has restricted retail consumers to Bitcoin (BTC) and Ether (ETH) trading.

The regulations also limit investors to investing no more than one-third of their net income, or 30%. In addition to HashKey and OSL, there are Huobi and Gate. Io has also applied for retail crypto trading services and is currently awaiting regulatory approval.

Formerly, a gate Io executives shared their regulatory experience in Hong Kong and stated that the Hong Kong Securities and Futures Commission (SFC) has stricter requirements for virtual asset service providers than other regulators.

The regulator has mandated that crypto platforms provide insurance and compensation arrangements to aid in client protection. In addition, crypto exchanges are required to store 98% of their assets in cold wallets.