Global cryptocurrency exchange OKX, ranked second by trading volume and a leading Web3 technology company, has announced the establishment of a Hong Kong subsidiary to provide virtual asset services locally. The company will apply for a Virtual Asset Service Provider (VASP) license under Hong Kong's Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, effective June 1, 2023. Additionally, OKX will seek Type 1 (dealing in securities) and Type 7 (automated trading services) licenses under the Securities and Futures Ordinance.
Strategic Preparation for Regulatory Compliance
Prior to this announcement, OKX spent over a year preparing its license application, ensuring its corporate structure, products, security protocols, and compliance frameworks align with anticipated regulatory standards.
👉 Discover how OKX prioritizes regulatory compliance
Executive Insights on Hong Kong's Regulatory Vision
Lennix Lai, Managing Director of Global Institutional Business at OKX, emphasized:
"Regulation and licensing are pivotal for the future success of cryptocurrency and Web3 industries. Recognizing Hong Kong's growth potential, we plan to invest in local talent over the next five years while collaborating with regulators to strengthen the ecosystem. The new VASP regime positions Hong Kong as a global virtual asset hub through robust oversight."
Bing Zhao, OKX General Counsel, added:
"We rigorously evaluate global regulatory landscapes to pursue licenses in compliant jurisdictions. For Hong Kong, we’ll meet the Securities and Futures Commission’s requirements on cybersecurity, asset custody, anti-money laundering, and compliance—exceeding expectations where possible."
Hong Kong’s Emergence as a Crypto Hub
Hong Kong has solidified its role as a cryptocurrency industry nexus, with evolving regulations enhancing its appeal to innovators, entrepreneurs, and top talent. OKX’s expansion underscores this strategic shift.
Upcoming Industry Engagements
OKX will sponsor two major events:
- WOW Summit
- Hong Kong Web3 Carnival
Featured activities include keynote speeches and panel discussions outlining OKX’s growth initiatives.
FAQ: OKX Hong Kong Expansion
Q: Why did OKX choose Hong Kong for its subsidiary?
A: Hong Kong’s progressive regulatory framework and status as a financial hub align with OKX’s commitment to compliant growth.
Q: What licenses is OKX pursuing?
A: A VASP license and Type 1/7 securities licenses to operate fully under local laws.
Q: How does OKX ensure regulatory compliance?
A: Through dedicated teams, advanced security measures, and proactive cooperation with authorities.
👉 Learn more about OKX’s global compliance efforts
Risk Disclosure
Cryptocurrency investments carry significant risk due to price volatility. Investors may lose their entire capital. Assess risks carefully.