OKX is approaching the end of the queue to enter Hong Kong's crypto market.
OKX, a major player in the cryptocurrency exchange arena, is in the home stretch of obtaining a Virtual Asset Service Provider (VASP) license in Hong Kong, with expectations set for approval by March 2024.
Li Zhikai, OKX's Global Chief Commercial Officer, shared in a recent interview that the crypto exchange is already making headway by engaging with banks and initializing technology integration.
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According to Zhikai, the company eagerly awaits the VASP license to officially start offering its services in Hong Kong.
Hong Kong has recently been carving out its niche as a crypto-friendly jurisdiction. In 2023, the region established a formal licensing system for crypto exchanges to serve retail customers.
Despite more than 80 firms showing initial interest, only a handful of companies, like HashKey and OSL, have navigated the regulatory maze to begin offering retail crypto trading services.
Notably, the Hong Kong regulatory framework allows only Bitcoin (BTC) and Ether (ETH) to be traded by retail customers, aiming to minimize the risks associated with newer cryptocurrencies. Investment caps have also been instituted, restricting investors to using just 30% of their net income for crypto investments.
Meanwhile, other platforms like Huobi and Gate.io are still in the queue, hoping to secure their own licenses. According to a Gate.io executive, the Hong Kong Securities and Futures Commission has set a high bar for regulatory compliance. To foster consumer protection, the regulator mandates that crypto exchanges hold 98% of their assets in cold wallets and provide insurance as well as compensation arrangements.
As OKX prepares for the final phase of the VASP licensing process in Hong Kong, the broader question arises: Will they join the ranks of HashKey and OSL or face hurdles in one of Asia's emerging crypto hubs?
