OKX, the world's second largest crypto exchange by trading volume on Tuesday announced the launch of its Hong Kong entity. The newly established OKX entity will apply for a digital asset service provider (VASP) license under the Securities and Futures Ordinance.
Based on reports, OKX has established an entity in Hong Kong to provide digital asset services in the special administrative region. The exchange will apply for a digital asset service provider (VASP) license under the Anti-Money Laundering and Anti-Terrorist Financing (Amendment) Ordinance 2022 and Type 1 & 7 licenses under the Securities and Futures Ordinance.
"We see great potential in Hong Kong, and are committed to investing and working with regulators over the next five years to continue building the local ecosystem," said Lennix Lai, managing director of global institutions at OKX.
Amid the recent regulatory crackdown on crypto in the US, crypto firms are looking for offshore options and Hong Kong is emerging as the friendliest destination. Hong Kong has become an important destination for the crypto industry in recent months.
Meanwhile, banks from China have extended help to crypto firms in Hong Kong. The Hong Kong Monetary Authority and the Securities and Futures Commission will jointly hold a session in April.
Additionally, other leading exchanges such as Binance and Huobi Global are looking for ways to expand their crypto markets in Hong Kong. The city of Hong Kong is said to be establishing a licensing system for cryptoasset service providers, and regulating stablecoins and other cryptoassets.
