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Disclaimer: This story was originally published on May 24, 2024.

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OKX, one of the largest cryptocurrency exchanges by trading volume, withdrew its virtual asset services provider (VASP) license application in Hong Kong, the company announced on May 24.

“After careful consideration of our business strategy, OKX HK has decided to withdraw its VASP license application at this time,” the exchange said on its website.

It said it will cease its virtual asset trading services to Hong Kong residents by May 31. After the deadline, customers will only be able to withdraw their funds.

OKX’s Hong Kong exit comes amid a wave of recent license application withdrawals from the jurisdiction. This month saw the retreat of Huobi Hong Kong, crypto exchange HTX’s subsidiary, QuanXLab, IBTCEX, and Gate.HK.

A visit to the Hong Kong Securities and Futures Commission (SFC) VASP register reveals a prominent notice reminding users that VASPs operating in Hong Kong had until Feb. 29 to submit license applications or cease operations by May 31.

According to the website, the regulator has only approved two exchanges so far. Crypto exchange Crypto.com’s license application is still being reviewed by the SFC.

Despite the recent string of withdrawals, Hong Kong appears to maintain an open stance toward the crypto industry. The SFC is reportedly mulling allowing staking for Ether exchange-traded funds (ETFs).

Last month, the regulator conditionally approved spot ETFs for Bitcoin and Ether, with at least three local issuers launching their respective exchange-traded products.