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OKX, one of the largest cryptocurrency exchanges globally, has opted to withdraw its application to operate in Hong Kong, marking a notable development in the regulatory landscape.
In a recent announcement, OKX cited strategic considerations for its decision to withdraw its application for a Virtual Asset Service Provider (VASP) license in Hong Kong. The exchange emphasized that this move followed careful deliberation of its business strategy.
As a result of this decision, OKX will cease providing centralized virtual asset trading services in Hong Kong by May 31. However, customers will retain the ability to withdraw their funds from the platform.
This withdrawal comes amidst a trend of other applicants retracting their applications from the approval process. Notably, earlier this month, several applicants, including the Hong Kong-based subsidiary of HTX and Huobi Hong Kong, followed suit by withdrawing their applications with the Securities and Futures Commission.
The Securities and Futures Commission is currently reviewing license applications from numerous major cryptocurrency exchanges, including Crypto.com and Bullish, the owner of CoinDesk. However, the regulator has only approved two exchanges thus far, with the latest approval granted in 2022.
OKX’s decision to withdraw its application underscores the evolving and complex regulatory environment surrounding cryptocurrency exchanges. As the industry navigates these regulatory challenges, exchanges must carefully evaluate their strategies and adapt to ensure compliance and sustainability in the long term.
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