OKX has announced that its spot trading is available for users in Hong Kong. The company made the statement via a blog post today, May 25, 2023, saying that its app is available for secure spot trading in 16 digital currencies.
OKX, which is the second cryptocurrency exchange by volume, said that users in Hong Kong can trade assets such as BTC, ETH, ADA, LINK, SOL, DOT, UNI, SAND, LTC, AVAX, AXS, LINK, ATOM, XLM, LINK, USDT, and USDC through its enhanced secure app. The release said that the exchange is compliant with the virtual asset service provider (VASP) requirements of the city. Payment methods available for token purchase include HKD, peer-to-peer (P2P) or via ApplePay, Visa and Mastercard through third-party providers
Compliance with VASP
It further stated that the exchange complied with the expected high standards in its operations within the city as well as elsewhere, laying emphasis on the security of investor assets, enhanced technology, and appropriate risk control.
The announcement by OKX is a sequel to an earlier statement by the company, saying that it set up a Hong Kong entity for its operation in the city in anticipation of a license to operate under the VASPs regime, a regulatory guideline for operators of digital asset services in Hong Kong. VASP will come into effect on the first of next month (June 1, 2023).
Prepared to operate according to Hong Kong guidelines
The release said that OKX has been working towards ensuring that it is fully prepared to operate according to the regulatory guidelines set out by the city’s regulators. These include areas such as custody, AML, and security.
OKX boasts of being the only crypto exchange that has published its Proof of Reserve among the top exchanges. It said that people can independently verify this using zk-STARK zero-knowledge technology, adding that this has been made possible due to the platform’s latest upgrade. Users can independently verify the state of the exchange’s solvency and know whether its assets are actually backed by the reserves that it claims. In April, the report showed that OKX holds $10.4 billion in BTC, USDT and ether.
An easy-to-use app
The company’s Global Chief Commercial Officer, Lennix Lai, said that OKX believes that people in Hong Kong deserve to get the best of crypto services as available in the OKX app. He said that what the company has done is deploy an easy-to-use app that also complies with the requirements for VASPs. Lai said that OKX will continue to work with the government of Hong Kong to maintain the city as a financial hub.
“We will continue to collaborate with Hong Kong regulators in the process of our licensing efforts under the new VASP regime, and invest in making this city a resurgent digital assets hub in support of the government’s policy goals,” he said.
The statement said that users of the exchange in Hong Kong, should expect more features in the company’s services.
VASP required that providers work with two traditional indexes approved by the regulators. Every token is expected to have been in use for a minimum of 12 months. HK requires tokens to meet the two cryptocurrency indexes launched by traditional financial institutions and has been alive for 12 months.