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OKX Withdraws Application and Ceases Centralized Exchange Services in Hong Kong
Crypto exchange OKX recently made a significant decision regarding its operations in Hong Kong. The company announced the withdrawal of its Virtual Asset Service Provider (VASP) license application in the region. This move will result in the cessation of trading services for residents of Hong Kong.
Reason for Withdrawal
OKX, along with other exchanges like Gate.io’s HKVAEX and Huobi HK, decided to withdraw their VASP applications from the Hong Kong Securities and Futures Commission. The company stated that this decision was made after careful consideration of its business strategy.
Impact on Users
As part of complying with local regulations, OKX will stop offering centralized crypto exchange services to Hong Kong residents by May 31. Users were assured that their funds are safe; however, 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 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 the August 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.
Continued Services
Despite the cessation of centralized exchange services, OKX reassured customers that its OKX Web3 self-custodial wallet would remain available to local users and would not be impacted by this decision.
Regulatory Background
Hong Kong introduced a licensing regime for cryptocurrency service providers in December 2022, with the rules coming into effect in June 2023. The Hong Kong Securities and Futures Commission mandated that all regional crypto exchanges obtain an operational license, leading to the withdrawal of OKX’s application.
While OKX withdrew from Hong Kong, it has continued its operations in other jurisdictions. The exchange obtained a VASP license in Dubai in January and has expanded its services to Turkey and Australia.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
