Key takeaways:
- OKX has established a Hong Kong entity to introduce virtual asset services
- For more than a year, the exchange has been developing its plans, and it is now completely ready to submit its VASP application in compliance with all legal requirements.
The well-known cryptocurrency exchange OKX revealed the opening of its Hong Kong branch. In accordance with the Securities and Futures Ordinance, the newly created OKX entity will file for virtual asset service provider (VASP) licences.
The exchange plans to submit applications for the Type 1 & 7 licences under the Securities and Futures Ordinance as well as the Virtual Asset Service Provider (VASP) licence under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, which is due to go into effect on 1 June 2023.
The exchange will establish two entities: Hong Kong Fintech Company Limited, which will apply for permits to run a brokerage and exchange, and Hong Kong Custody Limited, which will apply for permits to store assets as a trust and company service provider (TSCP). While the latter will apply for licences that enable it to store and custody assets, the former will register for brokerage and exchange licences.
The declaration follows more than a year of planning on OKX’s part to meet expected legal obligations in terms of organisational structure, product, security, and conformity.
In recent years, Hong Kong has become a centre for the cryptocurrency industry, and as regulatory frameworks change, so does its importance for OKX and many other cutting-edge businesses, entrepreneurs, and top talent.
Crypto businesses are looking for offshore alternatives in light of the current regulatory onslaught on cryptocurrency in the US, with Hong Kong emerging as the most welcoming location.
Lennix Lai, managing director of global institutional for the exchange, stated that over the next five years, OKX plans to work with regulators on “building the local ecosystem” because Hong Kong has “immense potential” for cryptocurrency businesses.
OKX General Counsel Bing Zhao further reveals that OKX has an ambitious vision for obtaining licences in pertinent and appropriate jurisdictions.
In addition, OKX will be sponsoring the forthcoming industry gatherings WOW Summit and the Hong Kong Web3 Festival, as well as participate in keynote and panel discussions that will address the company’s plans in Hong Kong.
