OKX HK Ends License Application In Hong Kong, Advises Users To Withdraw Funds

OKX cancelled its request for a license to offer digital asset services in Hong Kong. The firm also wants to stop providing centralized digital asset trading services for customers in the country starting May 31, 2024. The company made this announcement on its website.

Despite this action, OKX HK has told users their money is safe as withdrawal services are still okay. After looking at its business plan, the firm decided not to ask for a license.

Customers Are Advised To Stay Updated On News From OKX

OKX HK wants to follow the rules by stopping centralized digital currency trading services while keeping its customers ‘ best interests at heart.

During the shift, customers can take their money out of their OKX accounts before the deadline on August 31 this year. They can move money to their wallets or other platforms during this period. The exchange wants customers to start taking money out before it closes.

Once the deadline passes, OKX HK will consider any money left in customer accounts as property that has yet to be claimed, as stated in its rules. The exchange told users to keep checking for more news and follow instructions to handle their money well after it closes.

OKX did the same thing as Huobi Hong Kong, part of HTX, previously termed Huobi Global. It recently stopped asking for a license to run a digital currency trading platform in Hong Kong. According to reports, this is the second time the firm has stopped trying to get approval from regulators.

Huobi Hong Kong didn’t say why it stopped asking for a license, which made people wonder if regulators pressured them. After it stopped, the Securities and Futures Commission (SFC) took HBGL Hong Kong Limited off the list of companies applying for a license to trade cryptocurrencies.

Only A Few Entities Are Still Pursuing Hong Kong’sKong’s VATP License

The withdrawal occurred when Hong Kong introduced new rules for virtual assets, making it hard for cryptocurrency exchanges to get a license. If a company doesn’t follow these rules, it has to close within three months of getting a notice from the SFC.

Huobi HK’s decision not to ask for a license isn’t the only time this happened in Hong Kong’s cryptocurrency market. HKVAEX, which has support from Binance, also recently decided not to ask for a license.

This shows how hard and expensive it is to follow the rules in the area. Only a few companies are left trying to get Hong Kong’s VATP license, so the crypto industry there is still waiting to see what will happen with the rules.