OKX, a prominent cryptocurrency exchange, has announced its decision to withdraw its application for a Virtual Asset Service Provider (VASP) license in Hong Kong. The exchange, ranked third globally by trading volume, made this strategic move after careful consideration of its business plans.

In a statement, OKX revealed that it will cease offering centralized virtual asset trading services in the region on May 31. From this date onwards, customers will only be able to withdraw their funds. Despite assurances about the safety of consumer assets, the exchange will cancel open orders, and deposits made after this cutoff may not be immediately refunded.

Hong Kong residents will have until August 31 to withdraw any remaining balances, after which unclaimed funds will be considered "unclaimed property." OKX's withdrawal, as announced on the SFC website, comes after submitting its VASP application to the Hong Kong Securities and Futures Commission on November 16, 2022. The exchange did not provide specific reasons for its decision to withdraw.

According to Hong Kong regulations, virtual asset trading platforms operating in the region must cease activities by May 31, 2024, if their licensing applications were not submitted to the SFC by February 29, 2024. Investors using these platforms are advised to plan their withdrawals accordingly.

OKX also informed users that local residents can still access its self-custodial OKX Web3 wallet, which operates independently from its centralized exchange services and remains unaffected by this decision.

In December 2022, the Legislative Council of Hong Kong implemented a licensing system for Bitcoin service providers, which became effective in June 2023. OKX was among the numerous international exchanges that applied for these licenses, along with Gate.HK, HKVAEX, and Huobi HK. However, all of these exchanges have now withdrawn their applications.

Despite this setback in Hong Kong, OKX has made progress in other regions. In January, the exchange obtained a VASP license in Dubai and subsequently began offering services in Australia and Turkey.