Crypto exchange OKX has announced that it has created a company in Hong Kong and intends to obtain a Virtual Asset Service Provider (VASP) licence from there.
OKX is a centralised crypto exchange founded in 2017 and operated by OK Group, which also includes the OKCoin trading platform. The crypto exchange ranks fourth in terms of daily trading volume.
The Hong Kong Securities and Futures Commission (SFC) requires all centralised cryptocurrency exchanges doing business in Hong Kong or working with local investors to be certified under Hong Kong's new licensing regime, effective June 1.
Lennix Lai, managing director of OKX's Global Division, believes that regulation and licensing are necessary for the success of services related to cryptocurrencies. He claims that he sees a great future for Hong Kong in this regard and is going to invest in talent and work with regulators to develop the digital ecosystem.
"With the new virtual asset services scheme, the Hong Kong government has created a robust regulatory structure that enables the city to become an international hub for virtual assets," said Lennix Lai.
In February, cryptocurrency exchange Huobi applied for permission to trade digital currencies in Hong Kong. So far, only two cryptocurrency exchanges, OSL and HashKey, have received official permission to exchange cryptocurrencies in this region.