While OKX is discontinuing its centralized cryptocurrency trading services for Hong Kong residents, the exchange\u2019s Web3 self-hosted wallet offerings will not be impacted.<\/p>\n
In compliance with regulatory requirements, OKX said that it would discontinue its centralized cryptocurrency trading services for residents of Hong Kong starting May 31, 2024.<\/p>\n
OKX attributed the decision to withdraw its virtual asset service provider (VASP) license application to a \u201ccareful consideration\u201d of its business strategy, however, the exchange did not provide further details or specific reasons behind this move.<\/p>\n
In its official blog post on Friday, OKX revealed that the customer funds remain secure, and withdrawal services will continue to function normally.<\/p>\n
After May 31, 2024, Hong Kong-based customers will only be able to withdraw their funds from the platform and will not be able to trade or deposit. It\u2019s important to note that OKX\u2019s Web3 self-hosted wallet services will remain accessible to Hong Kong users and will not be affected by this change.<\/p>\n
The cryptocurrency exchange advised users to refrain from making any deposits into their OKX account after the deadline. Furthermore, any open orders that are not closed by this date will be canceled, and resulting funds will be transferred to their OKX account balance.<\/p>\n
\u201cAfter careful consideration of our business strategy, we\u2019ve decided to withdraw OKX HK\u2019s VASP license application at this time. OKX will cease to provide centralized virtual asset trading services to Hong Kong residents by 31 May 2024 (Friday) in accordance with regulatory requirements.\u201d<\/p>\n
OKX submitted its application for a virtual asset service provider (VASP) license to the Hong Kong Securities and Futures Commission on November 16th. However, as confirmed on the SFC\u2019s website, the firm withdrew its application on May 24th without disclosing any reason behind the move.<\/p>\n
OKX isn\u2019t the only one to call it quits. In fact, several other applicants, including the Hong Kong subsidiary of HTX and Huobi Hong Kong, also withdrew their applications for VASP licenses with the Securities and Futures Commission (SFC) earlier this month.<\/p>\n
So far, the regulator has only approved two cryptocurrency exchanges to operate legally. The website mentions that OSL Exchange\u2019s OSL Digital Securities Limited and HashKey Exchange\u2019s Hash Blockchain Limited are the only two entities that have secured the license.<\/p>\n
The development comes two months after OKX informed its users in India that it is stopping its services in the country due to local regulations. The cryptocurrency exchange sent an email on March 21st advising Indian users to close out their positions by the end of April.<\/p>\n
This move by OKX was prompted by the Indian government\u2019s increasing scrutiny and crackdown on global crypto exchanges operating, which resulted in several entities ceasing operations in the country.<\/p>\n
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