OKX is opening an office in Hong Kong. The exchange is joining other top crypto startups that have shown interest moving to Hong Kong recently.
In a press release on Tuesday 28 March, the exchange stated it has a presence in Hong Kong already and is seeking for a virtual asset service provider (VASP) license under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, set to be effective from June 2023.
OKX has been preparing for over a year as it tried to meet regulatory demands in the area of organization, security, compliance and product.
OKX Sees Potential in Hong Kong
Hong Kong has recently grown into a crypto haven, making room for top crypto comppanies to find a place. OKX is one of the companies that have found great potential in Hong Kong. The exchange’s Managing Director of Global Institutional Lennix Lai speaking said:
“Through the new VASP regime, the Hong Kong government has created a robust regulatory framework and the right conditions for Hong Kong to become a world-leading virtual asset hub. We’re looking forward to applying for the relevant licenses via our Hong Kong entity.”
Hong Kong plans to legalize crypto, which is what is attracting the attention of crypto companies. This is in spite of mainland China being against crypto from the start. Other crypto-related companies that have moved to Hong Kong include crypto-friendly bank SEBA Bank and Huobi.
According to the Secretary for Financial Services and the Treasury Bureau in Hong Kong Christopher Hui, over 80 companies from abroad and mainland China have shown interest in Hong Kong since October 2022.
Hong Kong Determined to Develop Crypto Sector
The Secretary for Financial Services and the Treasury Bureau in a keynote address at the Aspen Digital Web 3 Investment Summit on 20 March 2023 said Hong Kong has a vision to develop the virtual asset sector in the region.
This it intends to achieve with the robust regulatory framework it has in place and the intention to legalize crypto. With such developments, crypto startups such as Binance and Ripple that are currently facing intense regulatory pressure in the US may also consider relocating to Hong Kong in the near future.