OKX becomes latest exchange to apply for Hong Kong VASP license

Cryptocurrency trade OKX intends to use for a Digital Belongings Service Supplier (VASP) license to function within the city-state, in response to a March 28 press launch.

OKX is the newest crypto agency to look to arrange store in Hong Kong after the nation’s pivot to a extra crypto-friendly stance. The trade’s Common Counsel Bing Zhao stated:

“OKX has an bold imaginative and prescient in terms of pursuing licenses in related and applicable jurisdictions, and we’re dedicated to working with the SFC all through the appliance course of.”

OKX’s plans

The trade’s managing director of world institutional Lennix Lai stated Hong Kong has “immense potential” for crypto corporations and OKX intends to work with regulators on “constructing the native ecosystem” over the subsequent 5 years.

The trade has been engaged on its plans for greater than a 12 months now and is totally ready to fulfill all regulatory necessities for its VASP software.

In line with a South China Morning Submit report, OKX will arrange two entities within the city-state referred to as Hong Kong Fintech Firm Restricted and Hong Kong Custody Restricted to deal with its numerous operations. The previous will apply for brokerage and trade licenses, whereas the latter will apply for licenses that permit it to carry and custody belongings.

Hong Kong’s crypto regulatory regime

Hong Kong intends to legalize crypto buying and selling for retail buyers on June 1 and has been engaged on establishing a regulatory regime for the business over the previous few months.

The regime contains the VASP license to permit crypto exchanges to function within the nation with full authorization. With out the license, corporations is not going to be allowed to supply providers to retail buyers.

A variety of exchanges want to transfer to Hong Kong in some capability as soon as the regulatory framework comes into impact and a few are already within the means of securing the required approvals.

In the meantime, regulators are engaged on establishing banking relationships for crypto corporations that adhere to its stringent KYC and AML necessities, in response to a Bloomberg Information report.

The occasion will happen on April 28 and shall be led by the Hong Kong Financial Authority and the Securities and Futures Fee.

The 2 regulators are accountable for supervising stablecoins and cryptocurrency exchanges.