Cryptocurrency Exchange OKX withdraws VASP License Application in Hong Kong

OKX, the second largest offshore exchange, announced on Friday the withdrawal of its Virtual Asset Service Provider (VASP) license application in Hong Kong and will cease providing services to the residents by May 31, 2024. 

The crypto exchange posted on its website, "We've decided to withdraw OKX HK's VASP license application at this time after careful consideration of our business strategy."

OKX said it will stop providing centralized virtual asset trading services in the region by May 31, after which customers will only be able to withdraw their funds from their wallets.

The exchange reassured users that funds remained safe. However, deposits made after the end of May might not be automatically credited. In addition, open orders will be canceled, and after May 31, the withdrawal function will be the only option available to Hong Kong residents until August 31. Users' remaining balances yet to be withdrawn after the deadline date will be deemed “unclaimed property” under the exchange terms, it added. 

OKX submitted its VASP application to the Hong Kong Securities and Futures Commission on November 16. Although OKX did not provide a reason for its withdrawal, the sites stated that “The SFC requires virtual asset trading platforms that are operating in Hong Kong to shut down their operations by May 31, 2024, if their license applications have not been submitted by February 29, 2024. The website advises investors using these platforms to start planning ahead. 

Users in Hong Kong will still be able to access the OKX Web3, a self-custodial wallet service, without any disruption. The company strongly advises users to transfer their assets to third-party platforms or self-custodial wallets. This ensures users stay in control of their funds and stay out of trouble.

It should be noted that several other applicants withdrew their applications from the Securities and Futures Commission earlier this month, including the Hong Kong-based subsidiary of HTX, Huobi Hong Kong.

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