OKX sets up Hong Kong office, plans to apply for virtual asset licenses

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Cryptocurrency exchange OKX has opened an office in Hong Kong and intends to apply for virtual asset licenses to offer digital asset services in the city. OKX plans to apply for the virtual asset service provider (VASP) license under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, effective from June 1, and the “Type 1 and 7” licenses under the Securities and Futures Ordinance.

The type 1 license is for dealing in securities while type 7 is for automated trading services. Lennix Lai, managing director of global institutional at OKX, stated that the company is committed to investing in talent and working with regulators in Hong Kong over the next five years.

Hong Kong’s digital asset market

Over 80 foreign and mainland China companies have expressed interest in establishing digital asset operations in Hong Kong, according to Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui. The new crypto regulations, which will come into effect in June, are drawing investors to the city’s digital asset market. The Hong Kong government has allocated HK$50 million (US$6.37 million) to develop the sector. Financial Secretary Paul Chan describes it as a “golden opportunity” to lead innovative development.

Also Read: DBS Bank Plans to Offer Crypto Trading Services in Hong Kong

OKX plans to expand in Hong Kong

OKX’s announcement of opening an office in Hong Kong is part of the company’s plan to expand in Asia. Previously, the exchange opened an office in Singapore in 2020 and has since grown in the region, with Lai stating that the company sees immense potential in Hong Kong. OKX is not the only exchange expanding in Hong Kong, with Huobi and BitMEX having previously established offices there. Huobi also holds a license issued by the Securities and Futures Commission in Hong Kong. With Hong Kong’s growing digital asset market and the government’s support, the city is becoming a hub for cryptocurrency exchanges and startups.

Anish Khalifa
Anish Khalifa
Hi there! I'm Anish Khalifa, a passionate cryptocurrency content writer with a deep love for this ever-evolving industry. I've been writing about crypto for over 3 years now and I've been captivated by its potential to revolutionize the financial world.

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