Crypto exchange OKX announced the establishment of a company in Hong Kong and the intention to apply for a local virtual asset service provider (VASP) license.
OKX is a centralized crypto exchange founded in 2017. The platform is operated by the OK Group, which also includes the OKCoin exchange. According to CoinGecko, OKX ranks fourth in terms of daily trading volume, with $1.5 billion as of March 28.
Under Hong Kong’s new licensing regime, which will come into effect on June 1, all centralized crypto exchanges doing business in Hong Kong or dealing with local investors must obtain a license from the Hong Kong Securities and Futures Commission (SFC).
Regulation and licensing are keys to the success of crypto services, says Lennix Lai, Managing Director of OKX Global Division. The exchange sees huge potential in Hong Kong and intends to invest in talent and work with regulators to further develop the local digital ecosystem, he said.
At the end of February, Huobi applied for a cryptocurrency trading license in Hong Kong. So far, only two licenses for the exchange of cryptocurrencies have been issued in the region – to the OSL and HashKey exchanges.