OKX, the crypto exchange, has decided to withdraw its application for a Virtual Asset Service Provider (VASP) license in Hong Kong. As a result, the company will no longer offer trading services to residents in the region. This move follows the withdrawal of VASP applications by Gate.io’s Hong Kong affiliate, HKVAEX, and Huobi HK from the Hong Kong Securities and Futures Commission. While OKX cited “careful consideration” of its business strategy as the reason for this decision, it did not provide further details.
To comply with local regulatory requirements, OKX will stop providing centralized crypto exchange services to Hong Kong residents by May 31. The exchange assured users that their funds would be safe, but deposits made after this date may not be automatically credited, and any open orders will be canceled. Any open orders by the end of May will also be canceled, and the funds will be transferred to the respective OKX account balances. Customers have until August 31, 2024, to withdraw their assets to self-custody wallets or accounts on other third-party platforms. After this deadline, users will no longer be able to initiate direct withdrawals or transfers, and any remaining balances will be treated as unclaimed property according to OKX’s terms of use.
Despite ceasing its centralized exchange services, OKX assured customers that its OKX Web3 self-custodial wallet will remain available to local users and will not be affected by this decision.
The withdrawal of OKX’s application aligns with Hong Kong’s cryptocurrency licensing requirements. The Legislative Council passed an amendment in December 2022, introducing a licensing regime for cryptocurrency service providers that came into effect in June 2023. The Hong Kong Securities and Futures Commission (SFC) mandated that all regional crypto exchanges obtain an operational license. Exchanges that failed to apply for a license were required to cease their services by May 31, 2024. OKX initially submitted its VASP application to the SFC on November 16. Numerous other global exchanges, including OKX, Bybit, Bullish, and Crypto.com, had applied for these retail trading licenses, and the SFC was reviewing applications from 20 crypto firms.
Although OKX has withdrawn from Hong Kong, it remains active in other jurisdictions. In January, the exchange obtained a VASP license in Dubai and has recently expanded its services to Turkey and Australia.
