<p>
The number
of big cryptocurrency brands looking to enter the Hong Kong market continues to
grow. All thanks to <a href="https://www.financemagnates.com/cryptocurrency/hong-kongs-new-crypto-licensing-regime-a-boon-or-bane-for-investors/" target="_blank" rel="follow">new
regulations on digital assets</a>, which are set to take effect in June and
make China's special administrative region a crypto enclave. OKX, the second-largest exchange in the world in terms of trading volumes, has just announced plans to open a branch in HK.</p><p>OKX to Apply for VASP
License and Launch Hong Kong Subsidiary</p><p class="MsoNormal">According
to Tuesday's press release, OKX has established a Hong Kong entity to launch
virtual asset services and plans to apply for a virtual asset service provider
(VASP) license under the Anti-Money Laundering and Counter-Terrorist Financing
(Amendment) Ordinance 2022, set to be effective from June 2023. </p><p class="MsoNormal">This move
follows over a year of preparation by OKX to meet expected regulatory
requirements in areas, such as organization, security, compliance and product. Hong
Kong has emerged as a hub for the crypto sector in recent years, growing in
significance for OKX and numerous other innovative companies, entrepreneurs,
and top talent as regulatory frameworks evolve.</p><p class="MsoNormal">"OKX
has an ambitious vision when it comes to pursuing licenses in relevant and
appropriate jurisdictions, and we are committed to working with the SFC
throughout the application process. We take security, custody, AML and
compliance very seriously and are keen to demonstrate how we can meet and
exceed the robust standards expected of virtual asset service providers under
this regulatory regime," Bing Zhao, the General Counsel at OKX, commented.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">At the forefront of innovation and regulation, we're excited to announce the launch of our Hong Kong entity!As we continue our mission to shape the future of the virtual asset industry, we plan to apply for licenses in Asia's world city. ????</p>— OKX (@okx) <a href="https://twitter.com/okx/status/1640613883026067464?ref_src=twsrc%5Etfw">March 28, 2023</a></blockquote><p class="MsoNormal">Lennix Lai, the Managing Director of Global Institutional at OKX, emphasized that regulation
and licensing are crucial for the future success of the crypto and Web3 sectors.
OKX sees tremendous potential in Hong Kong and is dedicated to investing in
talent and collaborating with regulators over the next five years to keep
growing the ecosystem locally.</p><p class="MsoNormal">"Through
the new VASP regime, the Hong Kong government has created a robust regulatory
framework and the right conditions for Hong Kong to become a world-leading
virtual asset <a href="https://www.financemagnates.com/terms/h/hub/" class="terms__main-term" id="70df8dbe-6564-4e03-8d97-dec68acfd2ce">hub</a>. We're looking forward to applying for the relevant licenses
via our Hong Kong entity," Lai added.</p><p>Hong Kong Set to Legalize
Crypto</p><p class="MsoNormal">The first
news that Hong Kong would decide to legalize cryptocurrency trading and allow
retail customers to trade digital assets <a href="https://www.financemagnates.com/cryptocurrency/hong-kong-set-to-legalize-crypto/" target="_blank" rel="follow">came in October 2022</a>. Moments later,
there was official confirmation that the SFC financial regulator was
considering <a href="https://www.financemagnates.com/cryptocurrency/regulation/hong-kong-decides-on-rules-for-crypto-etfs/" target="_blank" rel="follow">approving trading on virtual assets ETFs.
</a></p><p class="MsoNormal">A month
later, SEBA Bank, a cryptocurrency-friendly banking entity, <a href="https://www.financemagnates.com/cryptocurrency/seba-bank-enters-apac-with-new-hong-kong-office/" target="_blank" rel="follow">decided to launch
its Hong Kong office</a>, setting its sights on expansion in the APAC region.</p><p class="MsoNormal">A significant update was published in February when in October there was news reporting that the <a href="https://www.financemagnates.com/cryptocurrency/hong-kongs-sfc-consults-on-allowing-retail-traders-to-trade-crypto/" target="_blank" rel="follow">SFC had considered allowing retail cryptocurrency trading</a> was confirmed. More than a month ago, the commission had launched a consultation on the matter and confirmed that it would begin to officially regulating the industry as of 1 June.</p><p class="MsoNormal">Following
this announcement, a number of major cryptocurrency players began to announce
that they were setting up local offices and applying for a VASP license. <a href="https://www.financemagnates.com/cryptocurrency/huobi-to-launch-huobi-hong-kong-crypto-exchange-amid-regulatory-update/" target="_blank" rel="follow">Among
them were Huobi</a>, which wants to obtain all necessary authorizations before the
June deadline, and <a href="https://www.financemagnates.com/cryptocurrency/gateio-crypto-exchange-to-launch-gate-hk-and-apply-for-local-license/" target="_blank" rel="follow">Gate.io</a>, which intends to launch a new Gate HK platform in
the region.</p><p class="MsoNormal">According
to last week's news, <a href="https://www.financemagnates.com/cryptocurrency/hong-kong-to-start-regulating-crypto-in-june-2023-80-companies-wants-to-join/" target="_blank" rel="follow">more than 80 companies</a> are waiting in line to
join the Web3 ecosystem forming in Hong Kong. </p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Christopher Hui, Secretary for Financial Services and the Treasury Bureau, delivers the opening keynote and reinforces HK government’s vision to develop the virtual asset sector in Hong Kong.He mentions Web 3 presents a paradigm shift to the internet era. <a href="https://t.co/9MGkWOCj0O">pic.twitter.com/9MGkWOCj0O</a></p>— Everest Ventures Group (EVG) (@EVG_Ventures) <a href="https://twitter.com/EVG_Ventures/status/1637632164601942016?ref_src=twsrc%5Etfw">March 20, 2023</a></blockquote><p class="MsoNormal">During the
Aspen Digital Web 3 Investment Summit on 20 March 2023, Christian Hui, Hong
Kong's Secretary for Financial Services and the Treasury delivered a speech
emphasizing the goal of positioning China's Special Administrative Region as a
leader in the Web3 revolution. He disclosed that since October 2022, over 80
crypto firms from abroad and Mainland China have shown interest in setting up
branches in Hong Kong and acquiring local licenses.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
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