OKX announced that it will stop offering centralized cryptocurrency trading services to residents of Hong Kong starting May 31, 2024. This move is in compliance with local regulatory requirements.
The decision to withdraw its application for a virtual asset service provider (VASP) license was made after “careful consideration” of the company’s business strategy. However, OKX did not provide specific reasons for this decision.
Funds Remain Secure
In an official blog post on Friday, OKX assured customers that their funds remain secure. Withdrawal services will continue to operate normally, allowing users to access their assets.
After May 31, 2024, Hong Kong-based customers will only be able to withdraw funds from OKX. Trading and deposits will no longer be possible. However, OKX’s Web3 self-hosted wallet services will remain available to users in Hong Kong and will not be affected by this change.
OKX has advised users not to make any deposits into their accounts after the deadline. Any open orders that are not closed by May 31 will be canceled, and the funds will be credited to their OKX account balance.
OKX Official Statement
OKX stated, “After careful consideration of our business strategy, we’ve decided to withdraw OKX HK’s 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.”
VASP License Withdrawal
OKX submitted its VASP license application to the Hong Kong Securities and Futures Commission (SFC) on November 16th but withdrew it on May 24th without providing a specific reason.
OKX is not alone in this move. Other applicants, including the Hong Kong subsidiaries of HTX and Huobi Hong Kong, also withdrew their VASP license applications with the SFC earlier this month. So far, only two cryptocurrency exchanges, OSL Exchange’s OSL Digital Securities Limited and HashKey Exchange’s Hash Blockchain Limited, have received approval to operate legally.
This decision follows a similar move by OKX in India. In March, the exchange informed its Indian users that it would stop services due to local regulations. The Indian government’s increased scrutiny and crackdown on global crypto exchanges led to several entities, including OKX, ceasing operations in the country.
