OKX affiliate in Hong Kong has withdrawn its application for a Virtual Asset Service Provider (VASP) license.
The OKX HK affiliate of the OKX cryptocurrency exchange has revealed that it has withdrawn its application for a VASP license in Hong Kong. As of May 31st, Hong Kong users will no longer be able to use its services.
Users’ money would be safe, the cryptocurrency exchange promised. On the other hand, we will manually cancel any open orders and credit deposits made after May 31st, if possible. From May 31st to August 31st, residents of Hong Kong will only have the option of withdrawing. Any remaining funds will be deemed “unclaimed property” according to the platform’s policies after this date.
In its official announcement, the exchange stressed that OKX Web3 self-hosted wallet services will continue to run normally and be accessible to Hong Kong consumers.
OKX made its debut in Hong Kong in June 2023. The company applied for a VASP license with the Hong Kong Securities and Futures Commission (SFC) on November 16th, but today it withdrew the application, according to the SFC’s website. OKX did not disclose the reason for its withdrawal.
After losing licenses to Gate.io and HTX in Hong Kong, OKX pulled the plug
As of this week, OKX was the second exchange to revoke its license. Gate.HK, the Hong Kong subsidiary of Gate.io, also announced plans to stop operations and withdraw license applications from the region. Huobi HK, HTX’s Hong Kong affiliate, canceled its application last week, which is another issue that contributed to this decision.
Platforms that trade cryptocurrencies but fail to submit their license applications by the deadline of February 29 must terminate their local operations no later than May 31 or within three months of receiving further notification, whichever comes first, according to SFC regulations.
Numerous international exchanges have sought retail trading licenses in Hong Kong. The regulatory body is currently reviewing the applications of twenty cryptocurrency companies, including Bybit, Bullish, and Crypto.com, according to the SFC website.