OKX Plans to Secure a License in Hong Kong in 2024
- OKX recently expressed plans to operate in India and employ locals.
- The crypto exchange is currently negotiating with banks in Hong Kong while waiting to receive its license.
- Hong Kong warmed up to cryptocurrencies earlier this year but introduced strict policies to safeguard users.
Popular crypto exchange OKX is working to obtain a license in Hong Kong, according to local reports. The license will enable locals to trade cryptocurrencies and is expected to be issued in March 2024.
Li Zhikai, the global chief commercial officer of OKX, revealed in an interview that the company is now waiting to receive a license and open for business while actively negotiating with the banks.
Earlier this year, Hong Kong expressed suppport for cryptocurrency and created a licensing system for exchanges that want to serve retail clients. Only a few crypto platforms, like HashKey and OSL, were successful in obtaining the required license to launch retail crypto trading services. However, more than 80 crypto firms initially expressed interest in operating in the region.
Authorities in Hong Kong only allow retail users to trade Bitcoin and Ethereum as part of their plans to reduce the danger associated with engaging in emerging crypto tokens. Additionally, investors are only permitted to invest a third of their net income due to a 30% cap imposed by the rules.
In addition, Hong Kong’s crypto regulators have required cryptocurrency platforms to provide insurance and compensation as part of their efforts to protect users. Crypto exchanges must hold 98% of assets in cold storage.
OKX plans to attract 100,000,000–200,000 retail users from Hong Kong within its first year of operating in the region. The crypto exchange has made remarkable efforts to expand its presence and plans to leverage some of its previous achievements to educate and persuade Hong Kong residents that the digital currency market is secure and well-regulated.
OKX recently expressed plans to operate in India and employ locals. The company’s chief marketing officer, Haider Rafique, said OKX will leverage India’s large developer community to promote its wallet service, which already has a significant user base in India.
India’s stance on cryptocurrency isn’t exactly clear. The country has not rolled out any supportive policies that address cryptocurrencies but instead introduced high taxes. This situation has led some India-based companies to consider expanding overseas.