Benzinga - Crypto exchange OKX has applied for a virtual asset trading platform (VATP) license in Hong Kong, positioning its Hong Kong branch, OKX Hong Kong FinTech, at the forefront of the city's efforts to become a key cryptocurrency hub in the region.
The application, submitted on Nov. 16, is listed on the Securities and Futures Commission’s (SFC) website, South China Morning Post reported.
OKX Hong Kong FinTech is the seventh entity to apply for the license, just eight months after its establishment.
This follows PantherTrade, linked to Futu Holdings, which applied a day earlier.
Lennix Lai, OKX's Global Chief Commercial Officer, expressed enthusiasm about the application in a recent statement.
"We look forward to working closely with the SFC to advance OKX Hong Kong’s application while promoting the city as a global-leading virtual asset hub," he said.
The pursuit of a VATP license by OKX, among other companies, comes in the wake of new regulatory frameworks introduced by the SFC in late 2022.
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These regulations, effective from June, come with a one-year grace period.
They mandate licensing for exchanges operating in Hong Kong and, for the first time, allow licensed platforms to cater to retail investors.
Other significant players, including HTX and Crypto.com, which have connections to China and Hong Kong, have also expressed their intentions to apply.
Some firms are entering the Hong Kong crypto market under new brands through local entities.
For instance, Binance (CRYPTO: BNB) is pursuing a license through HKVAEX, and PantherTrade, the sixth VATP applicant, appears to be linked to Futu Securities.
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