Investing in Web 3.0: OKX Crypto Exchange Enters Final Stage of Hong Kong VASP License Application

Investing in Web 3.0

The OKX cryptocurrency exchange is on track to obtain a virtual asset service provider (VASP) license in Hong Kong by March 2024. Li Zhikai, the global chief commercial officer of OKX, commented that the exchange is currently in dialogue with banks and has started the necessary preparatory work, such as technology docking.

Hong Kong’s pro-crypto stance in 2023 led to the introduction of a licensing regime for crypto exchanges. As a result, numerous crypto platforms, including HashKey and OSL, have been granted the necessary license to offer retail crypto trading services.

HashKey began providing retail crypto trading services to Hong Kong users on Aug. 28. However, the regulatory body has only allowed for Bitcoin (BTC) and Ether (ETH) trading for retail customers, with an investment cap of 30%, meaning that investors can only invest one-third of their net income.

Therefore, if you’re looking to invest in Web 3.0, understanding the regulations and risk involved is essential. Moreover, it is important to research the various business ideas for Web 3.0 and the next generation of online business to make the most informed decision.

Apart from HashKey and OSL, Huobi and Gate.io have also applied for retail crypto trading services and are waiting for the regulatory nod. Previously, a Gate.io executive shared the regulatory experience in Hong Kong and told Cointelegraph that compared with other regulators, the Hong Kong Securities and Futures Commission has stricter requirements for virtual asset service providers. The regulator has made it compulsory for crypto platforms to offer insurance and compensation arrangement requirements to help protect clients. Apart from that, the crypto exchanges must hold 98% of assets in cold wallet storage.

Cointelegraph reached out to OKX for its views on the regulatory experience and expectations from the Hong Kong retail market but didn’t get an immediate response. To understand how to invest in Web 3.0, what business ideas are available for Web 3.0, and how Web 3.0 works, OKX could provide more details on the new generation of online business and the cryptocurrency Web 3.0.