OKX, a cryptocurrency exchange, announced that it has withdrawn its application to offer services related to digital assets in Hong Kong.
In the statement, the exchange said that they have decided to withdraw OKX HK’s VASP license application after “careful consideration” of our business strategy.
The exchange, which ranks third in terms of traded volume, said that it will cease offering centralized virtual asset trading services in the region on May 31. Customers will then only be able to take their money out.
Despite reassurances about the safety of consumer funds, the exchange will cancel open orders, and deposits after this date may not be immediately refunded. Starting May 31, Hong Kong residents will only be able to withdraw funds until August 31, after which any remaining balances will be deemed “unclaimed property.”
OKX withdrew today, as announced by the SFC website, after submitting its VASP application to the Hong Kong Securities and Futures Commission on November 16. OKX did not provide a reason for its withdrawal.
Virtual asset trading platforms existing in Hong Kong are required to cease operations there by May 31, 2024, if their licensing applications have not been submitted to the SFC by February 29, 2024. The website advises investors using these sites to start planning early.
The cryptocurrency exchange also informed users that local users could still access its self-custodial OKX Web3 wallet, which is independent of its centralized exchange services, and was unaffected.
In December 2022, the Legislative Council of Hong Kong implemented a licensing system for Bitcoin service providers, which became operative in June 2023.
OKX was among the numerous international exchanges that applied for these licenses. But OKX withdrew its application, along with those of other exchanges including Gate.HK, HKVAEX, and Huobi HK.
After obtaining a VASP license in Dubai in January, OKX began offering services in Australia and Turkey.
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