OKX, one of many largest cryptocurrency exchanges globally, has opted to withdraw its utility to function in Hong Kong, marking a notable improvement within the regulatory panorama.
In a current announcement, OKX cited strategic issues for its choice to withdraw its utility for a Digital Asset Service Supplier (VASP) license in Hong Kong. The trade emphasised that this transfer adopted cautious deliberation of its enterprise technique.
On account of this choice, OKX will stop offering centralized digital asset buying and selling companies in Hong Kong by Might 31. Nonetheless, clients will retain the power to withdraw their funds from the platform.
This withdrawal comes amidst a pattern of different candidates retracting their functions from the approval course of. Notably, earlier this month, a number of candidates, together with the Hong Kong-based subsidiary of HTX and Huobi Hong Kong, adopted go well with by withdrawing their functions with the Securities and Futures Fee.
The Securities and Futures Fee is presently reviewing license functions from quite a few main cryptocurrency exchanges, together with Crypto.com and Bullish, the proprietor of CoinDesk. Nonetheless, the regulator has solely accredited two exchanges so far, with the most recent approval granted in 2022.
OKX’s choice to withdraw its utility underscores the evolving and sophisticated regulatory atmosphere surrounding cryptocurrency exchanges. Because the business navigates these regulatory challenges, exchanges should rigorously consider their methods and adapt to make sure compliance and sustainability in the long run.
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