As per OKX's announcement, "OKX will cease to provide centralized virtual asset trading services to Hong Kong residents by 31 May 2024 (Friday) in accordance with regulatory requirements. Customer funds remain safe and withdrawal services will not be affected."
Crypto exchange OKX announced its plans to terminate digital asset trading services in Hong Kong by May 31. This decision follows OKX's withdrawal of its application for a virtual asset trading platform license in the region.
OKX is one of ten exchanges that have recently withdrawn their license applications in Hong Kong. Another major player, HTX, initially pulled its application in February, reapplied, and withdrew again earlier this month, according to the South China Morning Post (SCMP). As of writing, the Securities and Futures Commission (SFC) of Hong Kong has licensed only two crypto trading platforms, with 18 others awaiting decisions. New crypto exchange regulations were introduced in Hong Kong last June, which some industry stakeholders have criticized as burdensome.
The Seychelles-based exchange had submitted its license application in November but withdrew it recently. OKX cited a strategic business review for this move but provided no detailed reasons. Following the termination of trading services, customers can withdraw their funds until August 31. The remaining balances will be considered unclaimed property. OKX reassured users that while deposits post-May 31 may not be credited automatically, any existing open order will be terminated. Meanwhile, OKX's Web3 wallets will not be impacted by this development.
Despite these challenges, OKX is continuing its global expansion. The company has secured a Virtual Asset Service Provider (VASP) license in Dubai and has begun offering services in Turkey and Australia.
