OKX has announced that it will stop providing centralized cryptocurrency trading services to residents of Hong Kong starting May 31, 2024, to comply with regulatory requirements.

OKX attributed this decision to withdraw its virtual asset service provider (VASP) license application to a strategic business review, without giving detailed reasons.

OKX Withdraws from Hong Kong

In a blog post on Friday, OKX assured customers that their funds remain secure and withdrawal services will continue to operate as usual.

After May 31, 2024, Hong Kong users will only be able to withdraw funds and will no longer be able to trade or deposit. OKX’s Web3 self-hosted wallet services will still be available to Hong Kong users.

The exchange advised users not to make deposits after the deadline. Any open orders not closed by this date will be canceled, and funds will be transferred to users' OKX account balances.

"After careful consideration of our business strategy, we’ve decided to withdraw OKX HK’s VASP license application. OKX will cease to provide centralized virtual asset trading services to Hong Kong residents by May 31, 2024, in accordance with regulatory requirements."

OKX initially applied for a VASP license with the Hong Kong Securities and Futures Commission (SFC) on November 16th but withdrew the application on May 24th without specifying the reasons.

Other firms, including the Hong Kong subsidiaries of HTX and Huobi Hong Kong, have also recently withdrawn their VASP license applications with the SFC.

To date, only two cryptocurrency exchanges, OSL Digital Securities Limited and Hash Blockchain Limited (operating as OSL Exchange and HashKey Exchange, respectively), have received approval to operate legally in Hong Kong.

Exit from India

This decision follows OKX’s earlier exit from India, where it ceased services due to local regulatory pressures. The exchange notified Indian users on March 21st to close their positions by the end of April, in response to the Indian government’s increasing scrutiny of global crypto exchanges.