OKX crypto exchange enters final stage of Hong Kong VASP license application

OKX cryptocurrency trade has entered the ultimate stage earlier than buying a digital asset service supplier license (VASP) in Hong Kong. The crypto trade expects the ultimate approval for a VASP license by March 2024.

In an interview, Li Zhikai, the worldwide chief business officer of OKX, mentioned that it’s actively engaged in a dialogue with the banks and is at present ready for the group to be issued a license and begin a enterprise. The crypto trade has began the preparatory work, similar to know-how docking.

Hong Kong turned a pro-crypto nation in 2023 and introduced a licensing regime for crypto exchanges to supply their providers to retail clients. Whereas greater than 80 crypto firms initially showed interest in opening an office within the nation, solely a few crypto platforms, similar to HashKey and OSL, gained the required license to start out retail crypto buying and selling providers.

HashKey began offering retail crypto trading services to Hong Kong customers on Aug. 28. The regulatory physique within the nation has opened solely Bitcoin (BTC) and Ether (ETH) buying and selling for retail clients to chop again on the chance concerned with investing in new crypto tokens. The rules additionally put a 30% cap on buyers that solely permits them to speculate one-third of their internet earnings.

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Aside from HashKey and OSL, Huobi and Gate.io have additionally utilized for retail crypto buying and selling providers and are ready for the regulatory nod. Beforehand, a Gate.io govt shared the regulatory expertise in Hong Kong and informed Cointelegraph that in contrast with different regulators, the Hong Kong Securities and Futures Fee has stricter necessities for digital asset service suppliers. The regulator has made it obligatory for crypto platforms to supply insurance coverage and compensation association necessities to assist shield purchasers. Aside from that, the crypto exchanges should maintain 98% of property in chilly pockets storage.

Cointelegraph reached out to OKX for its views on the regulatory expertise and expectations from the Hong Kong retail market however didn’t get a right away response.

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