Hong Kong is expanding opportunities in the Web3 virtual asset trading sector. Recent developments, including stock-token trading and Bitcoin ETF applications, have intensified discussions around licensed compliant exchanges.
In early February, Hong Kong’s Securities and Futures Commission (SFC) mandated that unregistered Virtual Asset Trading Platforms (VATPs) must either apply for licensing by February 29 or cease operations by May 31. This timeline pressures exchanges like OKX Hong Kong, Bybit, and HKVAEX—among 14 others—awaiting VASP license approvals.
During the 2024 Hong Kong Web3 Festival, Cointime interviewed Frank Zhang, an Executive Director at OKX Hong Kong. Frank shared insights on OKX’s VATP application progress, compliance preparations, and Hong Kong’s Web3 financial future.
Key Interview Highlights
Q: What’s the latest update on OKX Hong Kong’s VATP license application?
Frank: OKX Hong Kong submitted its application in November 2023, as disclosed on the SFC website. Investors can track real-time updates there, including approved/licensed exchanges or those withdrawn from the process.
Q: How is OKX Hong Kong preparing for compliance?
Frank: Hong Kong’s clear regulatory framework—covering KYC, AML, and Travel Rule—guides our adjustments. Compliance isn’t just about rules; it enhances user experience and trust. Transparency helps users discern reliable platforms.
Q: Will OKX Hong Kong engage in Web3 financial projects like stablecoins or CBDCs?
Frank: The government’s stablecoin sandbox is a progressive step. As a platform, we aim to support this ecosystem’s growth under regulated collaboration.
Q: What impact would OKX’s licensing have on the industry?
Frank: Compliance fosters user confidence in asset safety, aligning with our mission: fair and secure virtual asset access. It’s central to OKX’s global brand ethos.
Q: How do Bitcoin ETFs influence this bull market?
Frank: ETFs bridge traditional finance with crypto, serving as entry points for new users and accelerating ecosystem maturity.
FAQs
1. Why is compliance critical for virtual asset exchanges?
Compliance ensures user asset protection, regulatory alignment, and long-term industry credibility.
2. How does OKX Hong Kong prioritize user security?
Through strict adherence to KYC/AML protocols and transparent regulatory cooperation.
3. What distinguishes Hong Kong’s stablecoin sandbox?
It enables controlled, collaborative innovation under government oversight.