Crypto exchange OKX has reportedly withdrawn its request for a license in Hong Kong.
The exchange joins many crypto companies in withdrawing their applications from the Asian region. Let’s discover more about this important news for OKX.
OKX Withdraws VASP License, Ceases Hong Kong Services
A message on the OKX website read: “After careful consideration of our business strategy, we’ve decided to withdraw OKX HK’s VASP license application at this time.” Withdrawing its application means OKX would cease to offer its services in Hong Kong.
The crypto exchange will no longer provide its centralized virtual asset services to Hong Kong residents from May 31. The exchange however assured users of the safety of their funds, guaranteeing them of an unaffected withdrawal process.
Source: X
OKX users have until August 21st to withdraw their funds. As per reports, users can move their funds to third-party platforms or self-custody wallets. At the end of the transition period, OKX will treat unwritdrawn funds as unclaimed assets.
Crypto Exchanges Leave Hong Kong Due to Regulatory Pressures
Despite Hong Kong warming up to crypto activities, crypto exchanges are retracing their steps from the region. HTX’s Hong Kong division, Huobi, recently withdrew its application for a license from Hong Kong’s regulators. This was the second time the exchange had withdrawn its request for regulatory approval.
Source: X
A couple of other crypto exchanges have withdrawn their request including Crypto.com, and HKVAEX, backed by Binance. HKVAEX cited Hong Kong’s strict regulatory environment as a reason for its withdrawal. Hong Kong recently banned Worldcoin from carrying out iris scans due to privacy concerns.
Only a few crypto exchanges have sustained their requests for Hong Kong’s VATP license. This creates a sense of uncertainty for the crypto market in the region.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.