In a blog post released today, OKX announced its intention to apply for a Virtual Asset Service Provider (VASP) license under new regulations in Hong Kong. As revealed, the cryptocurrency exchange has set up a Hong Kong entity to establish virtual asset services in the region.
As revealed, the VASP application will come under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance of 2022. According to the announcement, the new regime is planned to take effect starting from June 2023. Prior to the announcement, OKX has been preparing to meet the regulatory demands of this license for more than a year. The preparation saw the cryptocurrency exchange equip its organizational, product, security, and compliance standpoints.
More so, OKX’s attempt to venture into the Hong Kong market is due to the enabling environment provided by the region’s administration. With the support, Hong Kong is gradually emerging as a crypto hub. Therefore, attracting prominent firms within the sector to pitch their business tent in the region.
According to a Binbits report dated March 20, 2023, the Hong Kong Financial Secretary, Christain Hui described how Hong Kong has been gaining more attention from crypto firms since late last year. Hui highlighted how more than 80 virtual asset firms intended to extend their operations to Hong Kong.
Prior to the recent move by OKX, Hong Kong announced that it has set aside $6.3 million for Web3 advancement in its region. Similarly, the Hong Kong government said it will set up a committee to further highlight ways of providing guidelines that’ll support the growth of the industry. As revealed, the committee will consist of financial regulators, lawmakers, and market participants.
Reaction to OKX advancing move towards Hong Kong
The Managing Director of Global Institutional of OKX, Lennix Lai described regulation and licensing as important factors that’ll aid the success of the crypto and web3 industry. Lai explained how the crypto exchange sees huge business opportunities in the region.
Furthermore, The Executive said OKX is committed to investing in talents while working with regulators. Lai went on to commend the efforts of the Hong Kong government. Lastly, Lai added that OKX will be looking forward to applying for important licenses in the region.
Likewise, OKX General Counsel, Bing Zhao also reacted to the development. As revealed Zhao emphasized the exchange’s commitment to working with regulators. The Counsel noted that OKX prioritizes compliance with the regulatory guidelines of regions it has extended its services to. Zhao opined that the crypto exchange will not digress from the path as it is open to synergizing with regulators across the globe.