The number
of big cryptocurrency brands looking to enter the Hong Kong market continues to
grow. All thanks to new
regulations on digital assets, which are set to take effect in June and
make China’s special administrative region a crypto enclave. OKX, the second-largest exchange in the world in terms of trading volumes, has just announced plans to open a branch in HK.
OKX to Apply for VASP
License and Launch Hong Kong Subsidiary
According
to Tuesday’s press release, OKX has established a Hong Kong entity to launch
virtual asset services and plans to apply for a virtual asset service provider
(VASP) license under the Anti-Money Laundering and Counter-Terrorist Financing
(Amendment) Ordinance 2022, set to be effective from June 2023.
This move
follows over a year of preparation by OKX to meet expected regulatory
requirements in areas such as organization, security, compliance and product. Hong
Kong has emerged as a hub for the crypto sector in recent years, growing in
significance for OKX and numerous other innovative companies, entrepreneurs,
and top talent as regulatory frameworks evolve.
“OKX
has an ambitious vision when it comes to pursuing licenses in relevant and
appropriate jurisdictions, and we are committed to working with the SFC
throughout the application process. We take security, custody, AML and
compliance very seriously and are keen to demonstrate how we can meet and
exceed the robust standards expected of virtual asset service providers under
this regulatory regime,” Bing Zhao, the General Coinsel at OKX, commented.
At the forefront of innovation and regulation, we’re excited to announce the launch of our Hong Kong entity!
As we continue our mission to shape the future of the virtual asset industry, we plan to apply for licenses in Asia’s world city. 🌏
— OKX (@okx) March 28, 2023
Lennix Lai,
Managing Director of Global Institutional at OKX, emphasized that regulation
and licensing are crucial for the future success of the crypto and Web3 sectors.
OKX sees tremendous potential in Hong Kong and is dedicated to investing in
talent and collaborating with regulators over the next five years to keep
growing the ecosystem locally.
“Through
the new VASP regime, the Hong Kong government has created a robust regulatory
framework and the right conditions for Hong Kong to become a world-leading
virtual asset hub
