OKX withdraws VASP license application in Hong Kong

• OKX withdraws VASP license application in Hong Kong.
• The exchange will cease trading services by May 31.
• Users can withdraw funds until August 31.

OKX has announced the withdrawal of its Virtual Asset Service Provider (VASP) license application in Hong Kong.

The exchange stated in its website that “after careful consideration of our business strategy, we’ve decided to withdraw OKX HK’s VASP license application at this time.”

By withdrawing from Hong Kong, the exchange, ranked as the third largest globally by trading volume, follows a similar path taken by other major applicants like Huobi Hong Kong earlier this month. The move also follows the exchange’s withdrawal of VATP license application for the second time in May 15 this year.

OKX to cease Hong Kong operations from May 31

Effective May 31, 2024, OKX will cease providing centralized crypto asset trading services to Hong Kong residents.

This decision, described as a strategic reassessment by the company, emphasizes a shift in business priorities amid a challenging regulatory environment. Despite this move, OKX assures that customer funds will remain safe and that users will retain the ability to withdraw their assets.

The move aligns with a growing trend as multiple exchanges reevaluate their operations in Hong Kong due to stringent regulatory frameworks and slow approval processes by the Securities and Futures Commission (SFC). Notably, the SFC has only approved two exchanges since 2022, highlighting the rigorous standards in place.

From June 1, 2024, OKX will only support withdrawal transactions in Hong Kong, advising users against making deposits as these might not be automatically credited post-deadline.

Open orders remaining after May 31 will be automatically canceled, and the funds will be returned to users’ accounts. Customers are encouraged to withdraw their assets by August 31, 2024, after which direct withdrawals or transfers will no longer be possible.

The exchange’s Web3 services, including self-hosted wallets, will continue to operate normally in Hong Kong, allowing users to maintain decentralized financial activities without interruption.

In the meantime, OKX’s customer support team remains available to assist users during this transition.