Leading cryptocurrency exchange OKX, has said it will no longer operate in Hong Kong. Notably, early this year, Binance-backed HKVAEX withdrew its application and started to shut down. This decision follows shortly after.
Meanwhile, OKX’s action highlights the operational and legal difficulties big sector players face and signifies a dramatic change in the crypto landscape.
OKX Will Stop Operating in Hong Kong
In a recent post, OKX disclosed that it has withdrawn its application for a Virtual Asset Service Provider (VASP) license. The cryptocurrency exchange has made a noteworthy announcement while stressing its potential for economic growth.
To comply with regulatory obligations, the exchange will stop providing centralized virtual asset trading services to consumers in Hong Kong as of May 31, 2024. However, the withdrawal service will remain unaffected, so users can relax knowing that their money is safe.
The OKX exchange cautioned users not to deposit money after May 31 because it might not be immediately credited to their accounts. Any pending transactions will be cancelled by the deadline, and the remaining amount will be credited back to the users’ accounts.
Nonetheless, OKX stressed that assets would be safely stored in users’ accounts until August 31, 2024. The business’s Terms of Service will manage unclaimed assets beyond this date. OKX will still provide its Web3 self-hosted wallet services to Hong Kong users after it stops trading. This modification allows the exchange to remain active in the market and adjust to the changing regulatory landscape.
User Directions and Upcoming Tasks
The announcement from OKX gives consumers precise instructions for navigating this change. Before the deadline in August, the business strongly advises users to transfer their assets to third-party platforms or self-custodial wallets. By doing this, consumers may stay in control of their money and out of trouble.
Meanwhile, the exchange’s decision to leave Hong Kong indicates larger developments in the bitcoin sector. Exchanges worldwide are changing due to regulatory constraints and the requirement to comply with cryptocurrency legislation.
Notably, other big competitors, such as Binance-backed HKVAEX, which also had regulatory issues early this year, have taken similar strategic measures as OKX. On the other hand, the crypto exchange wants to create a seamless transition process and reassure users through proactive communication.
