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Cryptocurrency exchange OKX plans to apply for a Virtual Asset Service Provider (VASP) license to operate in the city-state, according to information on March 28. press release.
OKX is the latest cryptocurrency company to consider setting up a shop in Hong Kong after the city shifts to a more crypto-friendly stance. Bin Zhao, General Counsel of the exchange said:
“OKX has an ambitious vision regarding pursuing licenses in relevant and appropriate jurisdictions and is committed to working with SFC throughout the application process.”
OKX’s plan
The managing director of the exchange’s global body, Lennix Lai, said Hong Kong has “great potential” for cryptocurrency companies and that OKX will work with regulators to “build a local ecosystem” over the next five years. He said he would work on it.
The exchange has been working on plans for over a year and is ready to meet all regulatory requirements for VASP applications.
According to a South China Morning Post report, OKX will set up two entities in the city-state called Hong Kong Fintech Company Limited and Hong Kong Custody Limited to handle various operations. The former applies for brokerage and exchange licenses, while the latter applies for licenses that allow them to hold and store assets.
Hong Kong Crypto Regulatory Regime
Hong Kong plans to legalize cryptocurrency trading for retail investors on June 1, and has spent the past few months working to establish a regulatory regime for the industry.
The regime includes a VASP license that allows virtual currency exchanges to operate with full license in the country. Without a license, a company cannot offer services to individual investors.
Many exchanges are considering moving to Hong Kong once the regulatory framework comes into force, and some are already in the process of obtaining the necessary approvals.
Meanwhile, according to Bloomberg News, regulators are working to establish banking relationships with cryptocurrency companies that adhere to strict KYC and AML requirements. report.
The event will take place on 28th April and will be led by the Hong Kong Monetary Authority and the Securities and Futures Commission.
Two regulators are responsible for overseeing stablecoins and cryptocurrency exchanges.
