OKX Nears License Approval in Hong Kong
If you’re following the cryptocurrency market, you’ll be interested to know that digital asset exchange OKX is in the final stages of obtaining a Virtual Asset Service Provider License (VASP) in Hong Kong. Hong Kong has been supportive of cryptocurrencies and has seen an influx of firms applying for licenses to offer various crypto trading services in the country. Currently, approximately 80 firms have expressed interest in setting up offices in Hong Kong, with HashKey and OSL already receiving full licenses for retail trading services.
In a recent interview, Li Zhikai, OKX’s global Chief Commercial Officer, shared that the company expects to secure the license by March 2024. OKX has already begun negotiations with commercial banks to form partnerships for multiple services once the license is granted. The company is also preparing for a successful launch, with initial projections indicating it could attract between 100,000 to 200,000 users within its first year of offering retail services.
It’s worth noting that banks in Hong Kong have traditionally been cautious about the cryptocurrency industry. However, the government’s changing stance and authorization from the Hong Kong Securities and Futures Commission have encouraged them to partner with web3 firms. This move aligns with Hong Kong’s ambition to become a global crypto hub and has fueled speculation that the jurisdiction may serve as a “test net” for mainland China, which has implemented a blanket ban on cryptocurrencies.
OKX is also focused on educating and building trust with investors throughout the remainder of the year. The company’s partnership with Premier League side Manchester City demonstrates the increasing acceptance of cryptocurrencies by traditional institutions.
HashKey and OSL Lead the Way
HashKey and OSL have made significant strides in the Hong Kong crypto market by securing VASP licenses. HashKey recently launched a $100 million fund, with a majority of the investment allocated to altcoins rather than Bitcoin and Ethereum. High-net-worth individuals across Asia have shown interest in this fund. To mitigate risks, HashKey only allows investors to use 30% of their portfolio on the platform during the preparatory stage.
Despite the head start enjoyed by HashKey and OSL, other competitors such as Huobi and Gate.io are also seeking regulatory approval to offer retail services in Hong Kong. All firms aiming for licenses in the country must adhere to strict requirements, including insurance and compensation arrangements, as well as holding 98% of their assets in cold wallets.
Furthermore, OKX has plans to expand its wallet services across Asia and enter the Indian market. As the cryptocurrency industry continues to evolve, Hong Kong remains a key player in fostering its growth and development.
Hot Take: Hong Kong’s Crypto Push Sets the Stage for Growth
Hong Kong’s pro-crypto stance and the increasing number of firms interested in establishing a presence in the country indicate a promising future for the cryptocurrency industry. With OKX nearing its license approval and HashKey and OSL already making significant progress, Hong Kong is solidifying its position as a global crypto hub. It will be interesting to see how other competitors, such as Huobi and Gate.io, navigate the regulatory landscape and contribute to the market’s growth. As cryptocurrencies gain acceptance from traditional financial institutions, the potential for widespread adoption and investment opportunities continues to expand. Keep an eye on Hong Kong as it paves the way for the future of cryptocurrencies in Asia and beyond.
By
By
By
