OKX Crypto Exchange to Obtain Hong Kong License
OKX, a leading crypto trading platform, nears completion of VASP license application in Hong Kong. Expect regulatory approval by March 2024.
OKX, a crypto trading platform, is nearing the completion of its application process for a Virtual Asset Service Provider (VASP) license in Hong Kong. The company expects to secure the necessary regulatory approval by March 2024.
Li Zhikai, OKX's global Chief Commercial Officer, has revealed that the company is in active discussions with banks and is preparing for business operations, including technology integration. This preparation is part of a broader strategy to hit the ground running as soon as the license is granted.
Hong Kong has recently become more open to crypto businesses, attracting interest from over 80 firms. However, only a few, like HashKey and OSL, have received full licenses to offer retail trading services. OKX is not alone in this race; other major players like Huobi and Gate.io are also in the queue for regulatory approval.
Hong Kong's Securities and Futures Commission has set strict guidelines for crypto platforms. These include mandatory insurance and compensation arrangements and a requirement to hold 98% of assets in cold wallet storage. OKX has been proactive in meeting these requirements, investing in areas like talent acquisition, technology, compliance, and system security over the past 18 months.
OKX has already gained over 10,000 new user registrations in Hong Kong, a remarkable achievement given the city's new regulatory framework. Once operational, OKX plans to offer a wide range of tokens for purchase, trade, and conversion, including Bitcoin, Ethereum, Cardano, and many more. Users will also have the convenience of using multiple payment methods like ApplePay, Visa, and Mastercard.
As they gear up for 2024, the firm has initiated tech integration, aiming for a swift operational start. Early estimates indicate that the company aims to draw in 100,000 to 200,000 users in its inaugural year of providing retail services.
Zhikai pointed out that financial institutions have traditionally been cautious about the sector, often steering clear of volatile assets. This trend persisted for years until there was a shift in governmental policy last year, allowing the Hong Kong Securities and Futures Commission (SFC) to collaborate with web3 companies.