Cryptocurrency exchange OKX has submitted an application to the Hong Kong regulator for a license that will allow the trading platform to provide cryptocurrency services to institutional and retail investors.
Hong Kong-based crypto exchange OKX Hong Kong FinTech has become one of the first crypto players to apply for a regulated virtual asset trading platform (VATP) license in Hong Kong following the implementation of new policies by local authorities.. According to the rules for licensing virtual asset service providers, which came into force on June 1, 2023, cryptocurrency companies that have received regulatory approval can now serve not only professional investors, but also retail clients. Regional authorities say they want to turn Hong Kong into an international hub for cryptocurrency development.
“We intend to work closely with the Securities and Futures Commission of Hong Kong (SFC) to develop OKX's local business. Thus, we are promoting this administrative center as a global cryptocurrency hub,” said OKX International Development Director Lennix Lai..
Companies wishing to obtain a license from the authorities of this region of China must submit an application to the regulator before March 1. However, the process promises to be lengthy and expensive.. According to some insider's estimates, filing an application could cost 60 million Hong Kong dollars (about $7.7 million). OKX founder Star Xu said that the exchange began preparing to obtain a license last year.
Hong Kong authorities recently announced that they would tighten supervision over the cryptocurrency industry, but would not interfere with its development. In November, Swiss cryptocurrency bank SEBA received a license from the SFC to provide cryptocurrency services to local residents.