The well-known crypto exchange OKX announced its decision to withdraw its Virtual Asset Service Provider (VASP) license application from Hong Kong.

In a notice posted on OKX’s blog, the exchange cited careful consideration of its business strategy as the inspiration for the decision, though it did no provide specific details. As a result, OKX will halt its centralized crypto exchange services for Hong Kong residents by May 31, in compliance with local regulatory requirements.

The exchange reassured users that their funds remain safe. However, it noted that deposits made after May 31 may not be automatically credited, and open orders will be canceled. Post-May 31, the only available function for Hong Kong residents will be withdrawals, which will be supported until August 31. After this date, any remaining balances will be deemed “unclaimed property” under the platform’s terms.

OKX had initially submitted its VASP application to the Hong Kong Securities and Futures Commission on November 16 but decided to withdraw it, as confirmed by the SFC’s website.

“Virtual asset trading platforms operating in Hong Kong which have not submitted their license applications to the SFC by 29 February 2024 must close down their businesses in Hong Kong by 31 May 2024. Investors using these platforms should make preparations early,” the blog said.

Continuation of OKX Web3 services

OKX also reminded customers that its OKX Web3 self-custodial wallet, which is separate from its centralized exchange services, will remain unaffected and available to local users.

Following the introduction of new licensing regulations by Hong Kong’s Legislative Council in December 2022, OKX and several other crypto exchanges, like Gate.HK and Huobi HK, have withdrawn their applications for a VASP license in Hong Kong. This action comes as OKX expands its operations with new licenses and services in Dubai, Turkey, and Australia.