OKX Withdraws VASP License Application in Hong Kong, Ceases Centralized Trading Services

OKX, the third-largest cryptocurrency exchange globally by trading volume, has announced the withdrawal of its Virtual Asset Service Provider (VASP) license application in Hong Kong. This decision marks a strategic reassessment of business priorities amid a challenging regulatory landscape.

In a statement on its website, OKX cited a careful consideration of its business strategy as the reason for withdrawing the VASP license application in Hong Kong. This move follows a similar decision by other major applicants, including Huobi Hong Kong earlier this month, reflecting the evolving regulatory environment.

OKX Ends Centralized Crypto Trading Services in Hong Kong: Navigating Regulatory Challenges

Effective May 31, 2024, OKX will cease providing centralized crypto asset trading services to residents of Hong Kong. The decision underscores the exchange's strategic shift in response to regulatory challenges and slow approval processes by the Securities and Futures Commission (SFC).

Despite ceasing centralized trading services, OKX assures customers that their funds will remain safe, and users will retain the ability to withdraw their assets. However, the exchange advises against making deposits after May 31, as these may not be automatically credited.

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OKX Transitions to Withdrawal-Only Mode in Hong Kong: Embracing Web3 Services

From June 1, 2024, OKX will only support withdrawal transactions in Hong Kong. Open orders remaining after May 31 will be automatically canceled, and funds will be returned to users' accounts. Customers are encouraged to withdraw their assets by August 31, 2024, as direct withdrawals or transfers will no longer be possible thereafter.

While centralized trading services will cease, OKX's Web3 services, including self-hosted wallets, will continue to operate normally in Hong Kong. This allows users to maintain decentralized financial activities without interruption.

OKX reassures users that its customer support team remains available to assist during this transition period, ensuring a smooth experience for customers.

OKX's withdrawal of its VASP license application and cessation of centralized trading services in Hong Kong reflect the exchange's response to regulatory challenges and shifting business priorities. As the cryptocurrency landscape continues to evolve, OKX remains committed to providing safe and reliable services to its users.