NEWS
On May 24th, OKX, the second-largest cryptocurrency exchange globally by trading volume and a prominent Web3 technology company, announced its decision to retract 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,” OKX stated.
As per Hong Kong’s Securities and Futures Commission (SFC) official website, OKX HK filed a license application on November 16, 2023, only to withdraw it on May 24, 2024. Gate.io and VAEX also pulled back their VASP license applications during a similar timeframe.
Last year, the SFC mandated that virtual asset trading platforms in Hong Kong must either submit their license applications by February 29, 2024, or cease operations by May 31, 2024.
The license withdrawal comes weeks after FX Newsroom reported the launch announcement of OKX’s crypto exchange in Australia with spot and derivatives trading.
OKX emphasized in its announcement that, in compliance with the SFC’s directives, OKX must halt centralized virtual asset trading services to Hong Kong residents by May 31, 2024. However, customer funds remain secure, and withdrawal services will continue uninterrupted. Beyond May 31, 2024, customers can only withdraw funds, while OKX Web3, a self-hosted wallet, will remain accessible to Hong Kong clients.
Moreover, 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. However, after this date, users “will not be able to initiate any request to directly withdraw or transfer assets from your OKX account.”
