Hong Kong — OKX, the world’s second-largest crypto exchange by trading volume, has announced it has set up a Hong Kong entity for launching virtual asset services in Hong Kong, and intends to apply for the virtual asset service provider (VASP) license.
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The announcement comes after more than a year of preparation by OKX to fulfill anticipated regulatory requirements from organizational, product, security and compliance standpoints.
“Regulation and licensing are key to the future success of the crypto and Web3 sectors,” said OKX Managing Director of Global Institutional Lennix Lai.
“At OKX, we see immense potential in Hong Kong, and are committed to investing in talents and working with regulators over the next five years to continue building the local ecosystem. 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 licences via our Hong Kong entity.”
Over the past several years, Hong Kong has become a destination for the crypto industry, and will be increasingly important for OKX and many other innovative firms, entrepreneurs and top talents as regulation develops.
“OKX has an ambitious vision when it comes to pursuing licenses in relevant and appropriate jurisdictions, and we are committed to working with the SFC throughout the application process,” OKX General Counsel, Bing Zhao said.
“We take security, custody, AML and compliance very seriously and are keen to demonstrate how we can meet and exceed the robust standards expected of virtual asset service providers under this regulatory regime.”
OKX is sponsoring two industry conferences in Hong Kong in the coming weeks, the WOW Summit and the Hong Kong Web3 Festival and taking part in keynote and panel discussions to outline the company’s growth plans.