OKX, one of many largest cryptocurrency exchanges globally, has opted to withdraw its software to function in Hong Kong, marking a notable improvement within the regulatory panorama.
In a current announcement, OKX cited strategic concerns for its choice to withdraw its software for a Digital Asset Service Supplier (VASP) license in Hong Kong. The trade emphasised that this transfer adopted cautious deliberation of its enterprise technique.
Because of this choice, OKX will stop offering centralized digital asset buying and selling companies in Hong Kong by Could 31. Nevertheless, prospects will retain the flexibility to withdraw their funds from the platform.
This withdrawal comes amidst a development of different candidates retracting their purposes from the approval course of. Notably, earlier this month, a number of candidates, together with the Hong Kong-based subsidiary of HTX and Huobi Hong Kong, adopted swimsuit by withdrawing their purposes with the Securities and Futures Fee.
The Securities and Futures Fee is at the moment reviewing license purposes from quite a few main cryptocurrency exchanges, together with Crypto.com and Bullish, the proprietor of CoinDesk. Nevertheless, the regulator has solely authorised two exchanges up to now, with the most recent approval granted in 2022.
OKX’s choice to withdraw its software underscores the evolving and complicated regulatory setting surrounding cryptocurrency exchanges. Because the trade navigates these regulatory challenges, exchanges should rigorously consider their methods and adapt to make sure compliance and sustainability in the long run.
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