OKX Aims for Hong Kong VASP License by June 2024

Summary

• OKX is gearing up for a Virtual Asset Service Provider (VASP) license application expected by June 2024.
• If successful, they anticipate attracting between 100,000 to 200,000 retail users from Hong Kong in the first year post-license.
• OKX is in advanced stages of preparations for its license application and has already begun dialogues with banks.

In a significant move toward regulatory compliance, crypto exchange OKX is gearing up for a Virtual Asset Service Provider (VASP) license application expected by June next year. Following HashKey's recent acquisition of the first VASP license, Jimmy Lai, the Global Chief Commercial Officer at OKX, revealed in an interview that the company is in the advanced stages of preparations for its own license application. If successful, they anticipate attracting between 100,000 to 200,000 retail users from Hong Kong in the first year post-license.

Lai Zhikai, spokesperson for OKX, disclosed that ongoing dialogues with banks are taking place, and banks are eagerly anticipating the license approval to commence business operations. Technical integration work has also commenced. Banks, historically cautious about the virtual currency industry, only began showing interest after the Hong Kong government promoted the city as a global virtual asset center last year. Both the Securities and Futures Commission and the Hong Kong Monetary Authority issued clear directives for banks to allocate resources towards the industry.

However, Lai doesn't foresee an immediate surge in licensed brokers next year. He believes that the China Securities Regulatory Commission will maintain a cautious stance, imposing stringent requirements on applicants. Authorities are likely to adopt a wait-and-see approach to assess the performance of license holders.

As the official "standard partner" of the English football team Manchester City, OKX's Jimmy Lai aims to leverage this partnership to educate investors and convince the people of Hong Kong that the virtual currency industry is safe and well-regulated. The sponsorship deal with a traditional brand like Manchester City serves as proof of the industry's maturity and acceptance.