OKX requests VASP license in Hong Kong: Report

OKX requests VASP license in Hong Kong: Report

The OKX crypto exchange based on the Seychelles has announced its plans to expand their presence in Hong Kong by applying for licenses for virtual assets as part of the new regulatory system as well as licenses of type 1 and 7 as part of the Securities and Futures Ordinance.

It is also planned to establish a branch in Hong Kong to introduce services for virtual assets in the region.

The Hong Kong expansion of OKX

According to the official blog post, OKX has been working for more than a year to meet the new regulatory requirements of Hong Kong that aim to regulate Virtual Asset Service Providers (VASPS) that will come into force in June of this year.

As part of its expansion plans in the city state, the crypto exchange will found two companies-

• Hong Kong Fintech Company Limited- involved in applying for licenses for the operation of a broker and stock exchange business,
• Hong Kong Custody Limited-Participation in the application for a Trust and Company Service Provider (TSCP) license for holding assets.

Lennix Lai, Managing Director of OKX Global Institutional, believes that the new VASP regime created by the Hong Kong government is a "robust framework of regulation" and the right prerequisites for becoming a worldwide leading center for virtual assets. He added:

"Regulation and licensing are the key to the future success of the crypto and web3 sectors. At OKX we see an immense potential in Hong Kong and undertake to invest in talents over the next five years and work with the supervisory authorities to further build up the local ecosystem."

Hong Kong attracts crypto companies

In the past few months, Hong Kong has positioned itself as Asia's financial center and is working to move stock exchanges to withdraw from Singapore. Several crypto companies push into the city state, hoping to cover the demand from the Chinese mainland to buy and sell token.

The official measures in the entire Pacific room have further strengthened the vision of these companies to strengthen their presence in Hong Kong.

Henry Liu, Managing Director of the BTSE crypto exchange, commented similarly,

"A large part of the Chinese capital is looking for more intelligent and safer investment options (...) in Hong Kong, of course, it makes more sense than elsewhere."

Several stock exchanges, such as Huobi, Kucoin and Gate.io, have announced plans to expand their presence in Hong Kong.

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