Cryptocurrency alternate OKX intends to use for a Digital Property Service Supplier (VASP) license to function within the city-state, in keeping with a March 28 press launch.
OKX is the most recent crypto agency to look to arrange store in Hong Kong after the nation’s pivot to a extra crypto-friendly stance. The alternate’s Normal Counsel Bing Zhao mentioned:
“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.”
The alternate’s managing director of worldwide institutional Lennix Lai mentioned Hong Kong has “immense potential” for crypto companies and OKX intends to work with regulators on “building the local ecosystem” over the following 5 years.
The alternate has been engaged on its plans for greater than a yr now and is absolutely ready to satisfy all regulatory necessities for its VASP software.
Based on a South China Morning Publish report, OKX will arrange two entities within the city-state referred to as Hong Kong Fintech Firm Restricted and Hong Kong Custody Restricted to deal with its numerous operations. The previous will apply for brokerage and alternate licenses, whereas the latter will apply for licenses that permit it to carry and custody belongings.
Hong Kong’s crypto regulatory regime
Hong Kong intends to legalize crypto buying and selling for retail traders on June 1 and has been engaged on organising a regulatory regime for the trade over the previous few months.
The regime consists of the VASP license to permit crypto exchanges to function within the nation with full authorization. With out the license, companies won’t be allowed to supply companies to retail traders.
Various exchanges need to transfer to Hong Kong in some capability as soon as the regulatory framework comes into impact and a few are already within the technique of securing the mandatory approvals.
In the meantime, regulators are engaged on establishing banking relationships for crypto companies that adhere to its stringent KYC and AML necessities, in keeping with a Bloomberg Information report.
The occasion will happen on April 28 and might be led by the Hong Kong Financial Authority and the Securities and Futures Fee.
The 2 regulators are in control of supervising stablecoins and cryptocurrency exchanges.