Seychelles-based cryptocurrency exchange OKX has unveiled its strategy to expand operations in Hong Kong by applying for multiple licenses under the city's emerging regulatory framework. This move positions OKX among the growing list of crypto firms establishing a foothold in Asia's financial hub.
Strategic Licensing Applications
OKX is pursuing three key regulatory approvals:
- Virtual Asset Service Provider (VASP) License - Under Hong Kong's new regime taking effect June 2023
Securities Licenses:
- Type 1 (Dealing in securities)
- Type 7 (Automated trading services)
- Trust and Company Service Provider (TCSP) License - For asset custody services
The exchange will establish two Hong Kong entities to facilitate these operations:
- Hong Kong Fintech Company Limited (brokerage and exchange operations)
- Hong Kong Custody Limited (digital asset custody services)
Commitment to Hong Kong's Crypto Ecosystem
Lennix Lai, OKX's Managing Director of Global Institutional, stated:
"Hong Kong's VASP regime creates a robust regulatory framework that positions the region to become a world-leading virtual asset hub. At OKX, we're committed to investing in local talent and collaborating with regulators over the next five years to strengthen the Web3 ecosystem."
👉 Discover how OKX is shaping Hong Kong's crypto future
Hong Kong's Emergence as a Crypto Hub
Hong Kong has strategically positioned itself to attract cryptocurrency businesses through:
- Clear regulatory guidelines for digital assets
- Proximity to Mainland China's investor base
- Established financial infrastructure
This comes as other Asian jurisdictions like Singapore tighten crypto regulations, creating migration opportunities for exchanges. Major platforms including Huobi, KuCoin, and Gate.io have announced similar Hong Kong expansion plans.
Henry Liu, CEO of BTSE exchange, noted:
"Chinese capital seeks smarter investment channels. Hong Kong naturally offers the optimal location for crypto ventures."
Frequently Asked Questions
What licenses is OKX applying for in Hong Kong?
OKX seeks VASP, Type 1 (securities dealing), and Type 7 (automated trading) licenses, plus a TCSP license for custody services.
When will Hong Kong's VASP regime take effect?
The new regulatory framework for virtual asset service providers becomes effective June 2023.
Why are crypto exchanges expanding in Hong Kong?
👉 Hong Kong offers a balanced regulatory approach, financial infrastructure, and access to Chinese investors amid tightening policies elsewhere in Asia.
How does OKX plan to support Hong Kong's crypto ecosystem?
Through $100M+ in local investments, talent development, and five-year partnerships with regulators to build Web3 infrastructure.
Which other exchanges are entering Hong Kong?
Major platforms including Huobi, KuCoin, Gate.io, and BTSE have announced expansion plans in the territory.