Major exchange OKX to apply for cryptocurrency license in Hong Kong

OKX establishes Hong Kong corporation

Major crypto asset (virtual currency) exchange OKX announced on the 28th that it intends to establish a local subsidiary and apply for a virtual currency service provider (VASP) license to provide virtual currency trading services in Hong Kong. .

Two big announcements this week @OKX is getting licensed around the world to bring the best trading experience to as many crypto traders as possible

Starting with an application in Hong Kong today, and another similar BIG update tomorrow! Who’s next?https://t.co/jDv8X837u6

— Haider (@Haider) March 28, 2023

OKX will also apply for a license to comply with the Securities and Futures Act.

Under the Anti-Money Laundering and Combating the Financing of Terrorism Ordinance, which was amended and passed last year, Hong Kong will implement new regulations on the supervision of cryptocurrency exchanges from June 1 this year. OKX said it has been preparing for more than a year to meet the new regulatory requirements.

Lennix Lai, Managing Director of Global Institutional Investors at the exchange, sees “immeasurable potential” in Hong Kong and said, “Over the next five years, we will continue to build the local ecosystem by focusing on human resources. We are ready to invest in and work with regulators.”

He argued that regulation and licensing will be key to the future success of the cryptocurrency and Web3 space. “Through the new VASP regime, the Hong Kong government has created a strong regulatory framework and the right conditions for Hong Kong to become the world’s leading cryptocurrency hub,” he said.

According to data from CoinMarketCap, OKX is the world’s sixth-largest exchange by spot trading volume and the world’s third-largest derivatives exchange by volume.

Movements by regulatory authorities to support cryptocurrency activities

In 2022, Hong Kong has made a major shift towards supporting the cryptocurrency industry.

In October last year, the Hong Kong government announced a policy to attract cryptocurrency-related companies that are proactive in innovation as an international financial hub, and to develop legislation in cooperation with the financial authorities. In January of this year, Treasury Secretary Paul Chan said that Hong Kong aims to become a regional cryptocurrency hub.

The Hong Kong Securities and Futures Commission (SFC) promotes regulatory development for cryptocurrency trading by retail investors, while the Hong Kong Monetary Authority (HKMA) regulates regulated activities, mainly related to stablecoins, as well as comprehensive provided a comprehensive regulatory framework.

On the other hand, it is also true that there are strict requirements to be cleared for opening bank accounts that companies use to conduct cryptocurrency-related activities, and the hurdles are high.

To address these challenges, Hong Kong regulators SFC and HKMA will jointly host a roundtable for cryptocurrency companies and banks on April 28.

Bloomberg reported Wednesday that the upcoming meeting at the HKMA will “encourage direct dialogue and share practical experiences and perspectives in opening and maintaining bank accounts.”

connection:Hong Kong Finance Minister Shows Policy for Web3 and Cryptocurrency Development

Does China support

Bloomberg also reported that Chinese state-owned financial institutions are interested in the crypto space.

Hong Kong branches of Bank of China, Bank of Communications and Shanghai Pudong Development Bank are seeking to offer services to cryptocurrency firms and are offering banking services or making inquiries to Hong Kong cryptocurrency firms, according to sources familiar with the matter. That’s what I’m talking about. Some representatives have visited and conducted sales at cryptocurrency companies, the person said.

With cryptocurrency-related activities largely banned in mainland China, local businesses appear to be surprised by Chinese banks’ push for cryptocurrencies.

Such a move has also prompted speculation that China has turned to support Hong Kong’s cryptocurrency activities.

On the other hand, in the United States, Silvergate Bank and Signature Bank, which favored cryptocurrency companies, went bankrupt, and Chinese financial institutions’ contact with Hong Kong’s cryptocurrency companies was interpreted as “opportunistic.” The future will be the focus of attention.

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