After Hong Kong introduced the new virtual asset service providers (VASPs) regime, many companies have decided to enter the local market in a bid to exploit its potential. OKX was one of them, introducing a version of the mobile app aimed at customers from China’s special administrative region. Now, the crypto exchange has announced over 10,000 new Hong Kong user registrations in just a month since launching its enhanced app.
OKX Builds User Base in Hong Kong
Over the past 18 months, OKX has been investing in talent acquisition and infrastructure in anticipation of its license application under Hong Kong's VASPs regime. This massive influx of new users shows that the retail crypto industry has huge potential, which has been unlocked by favorable regulatory changes. Hong Kong openly admits that it wants to become a new hub for digital assets.
OKX established its Hong Kong entity (OKX Hong Kong) in March 2023 with the aim of acquiring the VASP license and operating as a virtual asset trading platform in the city. Presently, the enhanced OKX app enables Hong Kong users to buy, sell, and hold 16 major digital assets.
"We're very encouraged to see such a positive response to OKX Hong Kong. Our sign-up metrics demonstrate strong local interest and immense market potential in a regulated environment,” Lennix Lai, the Global Chief Commercial Officer at OKX.
Lai stressed the high level of sophistication displayed by Hong Kong traders in selecting digital asset platforms. In the future, OKX aims to introduce a range of new products and experiences specifically tailored for local users, while adhering to regulatory guidelines.
Although OKX is the first cryptocurrency exchange to discuss its results in the local market, it is not the only one that has decided to claim a piece of this new crypto opportunity.
Hong Kong Opens Up to Cryptocurrency Companies
Hong Kong rolled out new rules to guide the cryptocurrency industry in the Chinese special administrative region on 1 June 2023. Crypto exchanges operating in the jurisdiction are now required to get licensed to offer their services to retail traders. In reality, this move legalized cryptocurrency trading among individual investors, which is a significant group that trading companies previously had no access to.
Initial reports that Hong Kong would allow retail traders to trade crypto emerged as early as October 2022. Christian Hui, the Secretary for Financial Services and the Treasury in Hong Kong, revealed in March 2023 that since October more than 80 foreign and Mainland China crypto companies had expressed interest in establishing a branch in Hong Kong and obtaining local licenses.
"As of the end of February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related Mainland and foreign companies in establishing their presence in Hong Kong," Hui commented.
Among them were Gate.io, Huobi, and CoinEX. Also appearing in the market in February was Interactive Brokers, intending to offer cryptocurrency services of its own. What's more, Hong Kong’s central bank is reportedly pushing HSBC, Standard Chartered, and the Bank of China, to accept cryptocurrency companies as clients.
In the meantime, as Hong Kong opens up to cryptocurrencies , Western jurisdictions appear to be taking the opposite direction. The United States has declared open war on digital assets. In Europe, the moves made by Binance suggest that the regulatory environment could begin to worsen.
