- OKX has been working over a year to comply with the new Hong Kong regulatory regulations.
- The cryptocurrency exchange is launching not one, but two new companies in the city-state.
OKX, a cryptocurrency exchange established in Seychelles, has stated that it would be seeking virtual asset licenses under the new regulatory system, as well as Type 1 and 7 licenses under the Securities and Futures Commission (SFC), in order to establish a presence in Hong Kong. In addition, it intends to start up an office in Hong Kong to provide virtual asset services there.
OKX has been working for over a year to comply with the new Hong Kong regulatory regulations that aim to oversee virtual asset service providers (VASPs) and will go into effect in June of this year, according to the company’s official blog post. The cryptocurrency exchange is launching not one, but two new companies in the city-state.
Robust Regulatory Framework
One of them is the Hong Kong Fintech Company Ltd, which plans to seek authorization to function as a brokerage and exchange. The second entity is Hong Kong Custody Ltd, which is seeking a TSCP license as a trust and company service provider (TSCP).
According to OKX Global Institutional Markets Managing Director Lennix Lai, Hong Kong’s new VASP system provides a “robust regulatory framework” and the necessary circumstances for the region to become a global leader in the virtual asset industry.
Hong Kong has been working hard over the last several months to displace Singapore as the financial center of Asia. Several cryptocurrency companies are flocking to Singapore in an effort to cash in on the huge token trading market in mainland China. These organizations’ plans to further establish themselves in Hong Kong have been given a boost by the recent regulatory crackdown across the Pacific.