OKX to end trading services in Hong Kong, abandons VASP license bid

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Global crypto exchange OKX announced today the withdrawal of its Virtual Asset Service Provider (VASP) license application in Hong Kong. The company will discontinue centralized trading services for Hong Kong residents by May 31, 2024, in compliance with regulatory demands.

OKX said in a recent announcement that customers’ funds are secure and that withdrawal services will remain unaffected until the stipulated date. Post-May 31, users will retain the ability to withdraw their assets.

The team also instructed its customers to avoid making deposits after the May 31 deadline. After this date, any remaining balances will be treated as unclaimed property in accordance with the company’s terms of use.

The exchange’s decision aligns with a broader trend among crypto firms retracting their VASP applications in Hong Kong. This follows the Legislative Council’s passage of an amendment in December 2022, which set the stage for a new licensing regime starting in June 2023.

Other exchanges like Gate.io’s Gate.HK, the Binance-affiliated HKVAEX, and Huobi HK’s HTX have also recently withdrawn their VASP applications.

Despite the withdrawal, OKX’s Web3 services, including self-hosted wallets, will continue to be accessible to users in the region, OKX stated.

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