OKX, a prominent cryptocurrency exchange, has announced its decision to withdraw its application for a Virtual Asset Service Provider (VASP) license and cease centralized crypto trading services for Hong Kong residents from May 31, 2024. The decision, according to OKX, is a result of "careful consideration" of its business strategy. Post the deadline, Hong Kong-based customers will only be able to withdraw their funds and will not be able to trade or deposit. However, OKX's Web3 self-hosted wallet services will remain accessible to Hong Kong users.

This move follows OKX's exit from the Indian market two months ago due to local regulations. Despite these retreats, the overall market sentiment remains optimistic. The regulatory environment is evolving, and while some exchanges are pulling back, others are stepping forward. The Hong Kong Securities and Futures Commission has already approved two cryptocurrency exchanges, OSL Digital Securities Limited and Hash Blockchain Limited, indicating a positive direction for the industry.