OKX Withdraws VASP License Application in Hong Kong: Impact and Resolution

OKX, a prominent cryptocurrency exchange, recently announced the withdrawal of its Virtual Asset Service Provider (VASP) license application in Hong Kong. The exchange's decision to retract the application was influenced by a strategic review of its business operations, leading to the cessation of centralized crypto exchange services for Hong Kong residents by May 31 to comply with local regulatory frameworks. OKX assured users of the safety of their funds but cautioned that deposits made after May 31 may face delays in processing, and existing open orders will be canceled. From June 1 onwards, only withdrawal services will be accessible to Hong Kong residents until August 31, after which any remaining balances will be classified as 'unclaimed property' as per the platform's policies. Initially submitting its VASP application to the Hong Kong Securities and Futures Commission on November 16, OKX opted to withdraw it in response to recent regulatory changes. This decision reflects OKX's commitment to adapting to the evolving regulatory environment and aligning with the directives of the Legislative Council. In light of the updated licensing regulations in Hong Kong, OKX, alongside other exchanges, withdrew their VASP license applications to focus on expanding services in Dubai, Turkey, and Australia, while maintaining the OKX Web3 self-custodial wallet for local users