The crypto exchange OKX has decided to withdraw its Virtual Asset Service Provider (VASP) license application from Hong Kong. According to a notice on OKX’s blog, this decision aligns with their business strategy, although detailed reasons were not provided. Consequently, OKX will cease its centralized crypto exchange services for Hong Kong residents by May 31 to meet local regulatory requirements.

OKX has assured users that their funds remain secure. However, deposits made after May 31 may not be automatically credited, and any open orders will be canceled. Post-May 31, the only available function for Hong Kong residents will be withdrawals, supported until August 31. After this date, any remaining balances will be classified as “unclaimed property” under the platform’s terms.

OKX initially submitted its VASP application to the Hong Kong Securities and Futures Commission on November 16 but has since decided to withdraw it.

Key Notice for Investors:

“Virtual asset trading platforms operating in Hong Kong which have not submitted their license applications to the SFC by 29 February 2024 must close down their businesses in Hong Kong by 31 May 2024. Investors using these platforms should make preparations early,” the blog stated.

OKX also emphasized that its OKX Web3 self-custodial wallet, which operates independently of its centralized exchange services, will remain available to local users in Hong Kong.

Following new licensing regulations introduced by Hong Kong’s Legislative Council in December 2022, OKX and several other crypto exchanges, such as Gate.HK and Huobi HK, have withdrawn their VASP license applications. This move coincides with OKX’s expansion into new markets, securing licenses and launching services in regions including Dubai, Turkey, and Australia.

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