OKX Drops VASP License Application in Hong Kong

OKX, the second-largest cryptocurrency exchange by trading volume and a leading Web3 technology company, announced on May 24th that it has decided to withdraw its application for a Virtual Asset Service Provider (VASP) license in Hong Kong.

"After careful consideration of our business strategy, OKX HK has decided to withdraw its VASP license application at this time," stated OKX.

According to the official website of Hong Kong's Securities and Futures Commission (SFC), OKX HK submitted a license application on November 16, 2023, but withdrew it on May 24, 2024. Additionally, Gate.io and VAEX also withdrew their VASP license applications around the same time.

Last year, the SFC stipulated that virtual asset trading platforms operating in Hong Kong must submit their license applications by February 29, 2024, or close down their businesses by May 31, 2024.

The crypto exchange also reminded the public in the announcement that in accordance with the SFC's requirements, OKX must cease to provide centralized virtual asset trading services to Hong Kong residents by May 31, 2024. However, customer funds remain safe, and withdrawal services will not be affected. After May 31, 2024, customers will only be able to withdraw funds. OKX Web3, a self-hosted wallet, will still be available to Hong Kong clients.

Furthermore, from now until August 31, 2024, Hong Kong users can withdraw assets from their OKX accounts to their self-custody wallet or other third-party platforms. After this date, users "will not be able to initiate any request to directly withdraw or transfer assets from your OKX account".

Just a few days prior, the Hong Kong affiliate of HTX (formerly known as Huobi) also withdrew its second-time application​ for a VASP license in Hong Kong​. Currently, only two entities, OSL Exchange and HashKey Exchange, have successfully obtained VASP licenses in the region.