Not only OKX, the Hong Kong branch of Gate.io and Cooperative have also "revoked" their application for a Virtual Currency Service Provider (VASP) license.
OKX, Gate.io and Cooperative all withdrew their license applications in Hong Kong
In a statement on May 24, 2024, cryptocurrency exchange OKX said it has withdrawn its application for a VASP license in Hong Kong, and will stop providing cryptocurrency trading services to local residents first. May 31. OKX said the decision came from “careful consideration” of business strategy without further explaining the specific reasons.
OKX claims that user assets are still safe, deposits to the exchange after this date will not be automatically recorded and open orders will be canceled. The exchange also reminded customers that its OKX Web3 self-hosted wallet, which is separate from centralized exchange services, is not affected and will continue to be available to local users.
From June 1, 2024, the withdrawal function will be the only option available to Hong Kong residents until August 31, after which the remaining balance will be considered “unclaimed assets.” according to the terms of the platform.
OKX, the second largest offshore exchange, announced the withdrawal of OKX HK's VASP license application. OKX will cease to provide services to HK residents by May 31, 2024. OKX Web3 (self-hosted wallet) services are not affected and will remain available to Hong Kong users.…
— Wu Blockchain (@WuBlockchain) May 24, 2024
Notably, on the list of withdrawals of registration applications also include Huobi HK of Cooperative , Gate.HK - Gate.io 's branch in Hong Kong - and HKVAEX, a cryptocurrency exchange rumored to be owned by Binance. , will cease operations on May 1 after withdrawing its previous license application.
Although these cryptocurrency exchanges did not specify the reason for withdrawing from Hong Kong, according to information posted by the Hong Kong Securities and Futures Commission (SFC) website:
“Digital asset trading platforms operating in Hong Kong that have not applied for a license to the SFC by February 29, 2024 must close their operations by May 31, 2024. Investors using You should be prepared to use these platforms."
According to recent updates, the SFC is tightening censorship of cryptocurrency trading platforms. In March, the Commission issued warnings to major exchanges such as Bybit and MEXC for operating illegally there. As of now, there are only two exchanges licensed to provide crypto trading in Hong Kong for individual investors: HashKey and OSL .
Hong Kong is one of the most open jurisdictions with cryptocurrency because of its desire to attract cash flow through the new field. Hong Kong is currently the second country to approve a series of Bitcoin spot ETFs after the United States. However, since trading began on April 30, 2024, the Hong Kong ETF market has seen "very modest" volumes compared to the United States .
Coin68 compiled
Join the discussion about the hottest issues of the DeFi market in the Fomo Sapiens chat group with Coin68 admins!!!
