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

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

In an interview, Li Zhikai, the worldwide chief industrial officer of OKX, stated 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 change has began the preparatory work, akin to expertise docking.

Hong Kong grew to become a pro-crypto nation in 2023 and introduced a licensing regime for crypto exchanges to supply their providers to retail prospects. Whereas greater than 80 crypto firms initially showed interest in opening an office within the nation, solely a few crypto platforms, akin to HashKey and OSL, gained the mandatory license to begin 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 prospects to chop again on the chance concerned with investing in new crypto tokens. The rules additionally put a 30% cap on traders that solely permits them to speculate one-third of their internet revenue.

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Other than 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 government 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 defend shoppers. Other than 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 direct response.

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