OKX Nears Acquisition of Virtual Asset Service Provider License in Hong Kong
Summary:
OKX cryptocurrency exchange is nearing the acquisition of a virtual asset service provider license in Hong Kong. They expect final approval by March next year. Hong Kong's regulatory body has established a licensing regime for crypto exchanges, with only a few platforms, including HashKey and OSL, obtaining the necessary licenses to offer retail crypto trading services. Other exchanges, such as Huobi and Gate.Io, are awaiting regulatory approval. OKX is currently preparing for operations and engaging in dialogue with banks.
OKX cryptocurrency exchange is currently in the final stage of acquiring a virtual asset service provider license (VASP) in Hong Kong. The exchange is hopeful to secure the final approval for the license by March of next year. Li Zhikai, the global chief commercial officer of OKX, stated in an interview that they are actively engaged in discussions with banks and eagerly anticipating the issuance of the license to commence their operations. OKX has already initiated preliminary preparations such as technology integration.
Hong Kong, which embraced cryptocurrency in 2023, introduced a licensing framework for crypto exchanges to cater to retail customers. While over 80 crypto firms initially expressed their interest in establishing offices in the country, only a handful, including HashKey and OSL, have obtained the required license to provide retail cryptocurrency trading services. HashKey has already commenced offering such services to users in Hong Kong since August 28. The regulatory body responsible has limited retail customers to trade only Bitcoin (BTC) and Ether (ETH) to mitigate investment risks associated with newer crypto tokens. Additionally, the regulations impose a 30% cap on investors, allowing them to invest only up to one-third of their net income.
In addition to HashKey and OSL, Huobi and Gate.Io have also applied for retail crypto trading services and are currently awaiting regulatory approval. A Gate.Io executive previously shared their experience with Hong Kong's regulations and revealed that the Hong Kong Securities and Futures Commission (SFC) has particularly stringent requirements for virtual asset service providers. The regulator mandates that crypto platforms offer insurance or compensation arrangements to protect clients, along with the stipulation that 98% of assets must be held in cold wallet storage.
When approached by Cointelegraph for their perspective on the regulatory process and expectations in the Hong Kong retail market, OKX did not respond immediately.
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Published At
9/4/2023 11:05:41 AM
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