OKX cryptocurrency alternate has entered the ultimate stage earlier than buying a digital asset service supplier license (VASP) in Hong Kong. The crypto alternate expects the ultimate approval for a VASP license by March 2024.
In an interview, Li Zhikai, the worldwide chief business officer of OKX, mentioned that it’s actively engaged in a dialogue with the banks and is at the moment ready for the group to be issued a license and begin a enterprise. The crypto alternate has began the preparatory work, reminiscent of know-how docking.
Hong Kong turned a pro-crypto nation in 2023 and introduced a licensing regime for crypto exchanges to supply their companies to retail prospects. Whereas greater than 80 crypto corporations initially confirmed curiosity in opening an workplace within the nation, solely a few crypto platforms, reminiscent of HashKey and OSL, gained the required license to start out retail crypto buying and selling companies.
HashKey began providing retail crypto buying and selling companies to Hong Kong customers on Aug. 28. The regulatory physique within the nation has opened solely Bitcoin (BTC) and Ether (ETH) buying and selling for retail prospects to chop again on the danger concerned with investing in new crypto tokens. The rules additionally put a 30% cap on buyers that solely permits them to take a position one-third of their web earnings.
Aside from HashKey and OSL, Huobi and Gate.io have additionally utilized for retail crypto buying and selling companies and are ready for the regulatory nod. Beforehand, a Gate.io government shared the regulatory expertise in Hong Kong and advised Cointelegraph that in contrast with different regulators, the Hong Kong Securities and Futures Fee has stricter necessities for digital asset service suppliers. The regulator has made it obligatory for crypto platforms to supply insurance coverage and compensation association necessities to assist shield purchasers. Aside from that, the crypto exchanges should maintain 98% of belongings in chilly pockets storage.
Cointelegraph reached out to OKX for its views on the regulatory expertise and expectations from the Hong Kong retail market however didn’t get a direct response.