OKX, a prominent cryptocurrency exchange, is on the cusp of securing a virtual asset service provider license (VASP) in Hong Kong, marking a significant stride towards formal approval.
The exchange anticipates the green light for its VASP license by March 2024.
Li Zhikai, the Global Chief Commercial Officer of OKX, conveyed in an interview that the exchange is actively engrossed in conversations with banks, eagerly awaiting the issuance of the license to initiate operations.
The preparatory groundwork, including technology integration, has already commenced.
Hong Kong, having embraced a pro-crypto stance in 2023, unveiled a regulatory framework to enable crypto exchanges to cater to retail customers.
While a slew of over 80 cryptocurrency firms initially demonstrated interest in establishing a presence within the nation, only a handful, notably HashKey and OSL, successfully procured the requisite licenses to commence retail crypto trading services.
On August 28, HashKey effectively launched retail crypto trading services for Hong Kong users.
To mitigate risks associated with nascent crypto tokens, the regulatory body exclusively sanctioned Bitcoin and Ether trading for retail customers.
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Additionally, regulatory guidelines enforced a 30% cap on investments, limiting individuals to allocate no more than one-third of their net income.
In tandem with HashKey and OSL, Huobi and Gate.io have also submitted applications for retail crypto trading services, awaiting regulatory endorsement.
A representative from Gate.io previously divulged that the Hong Kong Securities and Futures Commission imposes rigorous prerequisites on virtual asset service providers, emphasizing the necessity of insurance and compensation arrangements for client safeguarding.
Moreover, the regulator mandates crypto exchanges to maintain a substantial 98% of assets in cold wallet storage.
Inquiries made to OKX by Cointelegraph for insights into their regulatory journey and prospects in the Hong Kong retail market yielded no immediate response.
The unfolding developments underscore the cryptocurrency landscape’s growing convergence with traditional financial systems and the pursuit of responsible and secure trading environments.
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