Sad news for crypto enthusiasts in Hong Kong. Two major exchanges – Gate.HK and OKX, have announced their withdrawal from the local market, citing the need to comply with new regulatory requirements.
OKX Withdraws VASP License Application
OKX has decided to withdraw its Virtual Asset Service Provider (VASP) license application in Hong Kong. This strategic move, driven by business considerations, will see the cessation of OKX’s centralized virtual asset trading services for Hong Kong residents by May 31, 2024. However, customer funds will remain secure, and withdrawal services will continue to operate without interruption.
Important Notes for OKX Users:
- No New Deposits Post-Deadline: Users are advised not to make any deposits into their OKX accounts after May 31, 2024. Deposits made after this date may not be credited automatically. For assistance, users should contact customer support.
- Order Closures: All open orders that are not closed by May 31, 2024, will be canceled, and the resulting funds will be transferred to the account balance.
- Withdrawal Window: Users can withdraw assets from their OKX accounts to self-custody wallets or other platforms until August 31, 2024. After this date, any remaining balances will be treated as unclaimed property according to OKX’s terms of use.
Additional information for affected customers is available in the announcement on OKX’s website. Despite the withdrawal from centralized trading, OKX’s Web3 services, including self-hosted wallets, will remain available to users in Hong Kong, ensuring continued access to decentralized finance tools.
Gate.HK Also Faces Regulatory Challenges
Gate.HK, another prominent cryptocurrency exchange based in Hong Kong, has also announced significant operational changes. Following the Hong Kong Securities and Futures Commission’s (SFC) mandate requiring all crypto exchanges to obtain operational licenses by June 1, 2024, Gate.HK submitted its license application on February 28, 2024. However, the exchange withdrew its application on May 22, citing the need for a comprehensive overhaul of its trading platform.
Key Changes for Gate.HK Users:
- Service Cessation: Gate.HK ceased all activities related to acquiring new users and marketing as of May 23, 2024. Existing users are restricted to withdrawing funds only until August 28, 2024.
- Delisting of Tokens: All tokens, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Polygon (MATIC), and Tether (USDT), will be permanently delisted by May 28, 2024.
Gate.HK intends to relaunch its services after upgrading its platform to meet Hong Kong’s regulatory requirements, which include establishing robust Anti-Money Laundering and Counter-Terrorist Financing measures. More information can be found on Gate’s website.
Industry-Wide Impact
The decisions by OKX and Gate to withdraw their VASP applications highlight a broader trend among cryptocurrency exchanges in Hong Kong. This follows the Legislative Council’s amendment in December 2022, which introduced a new licensing regime effective from June 2023. Other exchanges, such as the Binance-affiliated HKVAEX and Huobi HK’s HTX, have also recently withdrawn their VASP applications.
Despite these regulatory challenges, OKX assures its users that their Web3 services, including self-hosted wallets, will remain accessible in the region. However, customers from Hong Kong should transfer their funds to wallets or other exchanges as soon as possible. The same is also important for Chinese residents bypassing crypto trading restrictions who were using HK addresses.
Where to trade Bitcoin in Hong Kong Now?
Look at our list of crypto exchanges in Hong Kong to find alternatives to OKX and Gate. Currently, we have 17 other CEXs available to HK residents. Nine of those are exchanges without KYC mandates that also service HK customers, ensuring there is no need to use VPNs to trade or bypass any identity checks either.
Conclusion
The exits of Gate.HK and OKX from the Hong Kong market underscore the evolving regulatory environment for cryptocurrency exchanges in the region. As these exchanges adapt to new regulations, users are encouraged to stay informed and make necessary adjustments to their crypto strategies.
