OKX, the prominent cryptocurrency exchange, has announced that it will cease its digital asset trading services in Hong Kong by the end of this month. The decision to withdraw its application for a virtual asset trading platform license in Hong Kong was made after careful consideration of the business development prospects, according to OKX. Although trading services will stop on May 31st, customers will still be able to make withdrawals. Additionally, OKX’s web3 self-hosted wallet will continue to provide services to customers.

OKX is one of the ten crypto exchanges that have recently withdrawn their trading platform license applications in Hong Kong. HTX, a trading giant associated with Justin Sun, also pulled its application in late February. Although it reapplied shortly after, it withdrew its application again earlier this month, as reported by the South China Morning Post (SCMP).

Currently, the Securities and Futures Commission (SFC), the financial regulator of the special administrative region, has only licensed two crypto trading platforms, while 18 other exchanges are awaiting decisions on their applications.

Last June, Hong Kong introduced new regulations for crypto exchanges, which have been criticized by some digital asset stakeholders as burdensome for trading platforms, according to the SCMP report.

OKX, headquartered in the Seychelles, is currently the third-largest crypto exchange in terms of 24-hour trading volume, trailing behind Binance and Bybit, as reported by CoinGecko.

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