OKX becomes latest exchange to apply for Hong Kong VASP license

Cryptocurrency speech OKX intends to use for a Virtual Assets Service Provider (VASP) licence to run successful the city-state, according to a March 28 press release.

OKX is the latest crypto steadfast to look to acceptable up store successful Hong Kong aft the country’s pivot to a much crypto-friendly stance. The exchange’s General Counsel Bing Zhao said:

“OKX has an ambitious imaginativeness erstwhile it comes to pursuing licenses successful applicable and due jurisdictions, and we are committed to moving with the SFC passim the exertion process.”

OKX’s plans

The exchange’s managing manager of planetary organization Lennix Lai said Hong Kong has “immense potential” for crypto firms and OKX intends to enactment with regulators connected “building the section ecosystem” implicit the adjacent 5 years.

The speech has been moving connected its plans for much than a twelvemonth present and is afloat prepared to conscionable each regulatory requirements for its VASP application.

According to a South China Morning Post report, OKX volition acceptable up 2 entities successful the city-state called Hong Kong Fintech Company Limited and Hong Kong Custody Limited to grip its assorted operations. The erstwhile volition use for brokerage and speech licenses, portion the second volition use for licenses that let it to clasp and custody assets.

Hong Kong’s crypto regulatory regime

Hong Kong intends to legalize crypto trading for retail investors connected June 1 and has been moving connected mounting up a regulatory authorities for the manufacture implicit the past fewer months.

The authorities includes the VASP licence to let crypto exchanges to run successful the state with afloat authorization. Without the license, firms volition not beryllium allowed to connection services to retail investors.

A fig of exchanges are looking to determination to Hong Kong successful immoderate capableness erstwhile the regulatory model comes into effect and immoderate are already successful the process of securing the indispensable approvals.

Meanwhile, regulators are moving connected establishing banking relationships for crypto firms that adhere to its stringent KYC and AML requirements, according to a Bloomberg News report.

The lawsuit volition instrumentality spot connected April 28 and volition beryllium led by the Hong Kong Monetary Authority and the Securities and Futures Commission.

The 2 regulators are successful complaint of supervising stablecoins and cryptocurrency exchanges.

The station OKX becomes latest speech to use for Hong Kong VASP license appeared archetypal connected CryptoSlate.