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OKX Seeks to Become Key Player in Hong Kong's Virtual Asset Industry with Licensing Applications

The announcement that it is applying for a Hong Kong VASP license under new regulatory regime follows more than a year of preparation and organizational design by OKX.

Photo by Andres Garcia / Unsplash

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OKX, the world's second-largest crypto exchange by trading volume, has announced that it will be applying for a virtual asset service provider (VASP) license under the new regulatory regime in Hong Kong.

An announcement on OKX's official blog also revealed that the Seychelles-based exchange plans to apply for Type 1 and 7 licenses under the Securities and Futures Ordinance.

This move comes after over a year of preparation and organizational design by OKX to fulfil anticipated regulatory requirements from organizational, product, security, and compliance standpoints.

"Regulation and licensing are key to the future success of the crypto and Web3 sectors. At OKX, we see immense potential in Hong Kong, and are committed to investing in talents and working with regulators over the next five years to continue building the local ecosystem," OKX managing director of global institutional Lennix Lai said.

Read more: Hong Kong Crypto Scams Net HK$1.7B; Binance Launches Fraud Campaign

Hong Kong's Anti-Money Laundering and Anti-Terrorist Financing Regulations 2022, will come into effect on June 1 this year. Currently only OSL and Hashkey have obtained this license.

"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," OKX general counsel Bing Zhao added.

Important Market

Hong Kong has become a popular destination for the crypto industry in recent years and will be increasingly important for OKX and other innovative firms, entrepreneurs, and top talents as regulation develops, the company said.

By applying for the VASP license and Type 1 and 7 licenses, OKX aims to position itself as a key player in the emerging regulatory landscape for virtual assets in Hong Kong and beyond.

The exchange is sponsoring two industry conferences in Hong Kong in the coming weeks, the WOW Summit and the Hong Kong Web3 Festival, and will be taking part in keynote and panel discussions to outline the company's growth plans.

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