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 latest announcement, OKX cited strategic issues for its determination to withdraw its utility for a Digital Asset Service Supplier (VASP) license in Hong Kong. The change emphasised that this transfer adopted cautious deliberation of its enterprise technique.
On account of this determination, OKX will stop offering centralized digital asset buying and selling companies in Hong Kong by Might 31. Nevertheless, clients will retain the power to withdraw their funds from the platform.
This withdrawal comes amidst a pattern of different candidates retracting their purposes 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 purposes with the Securities and Futures Fee.
The Securities and Futures Fee is at present reviewing license purposes from quite a few main cryptocurrency exchanges, together with Crypto.com and Bullish, the proprietor of CoinDesk. Nevertheless, the regulator has solely permitted two exchanges to this point, with the most recent approval granted in 2022.
OKX’s determination to withdraw its utility underscores the evolving and sophisticated regulatory surroundings 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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