Crypto exchange OKX is moving its Australian-focused services under a locally regulated entity as part of its expansion efforts through the Asia-Pacific region.
“I think Australia is a very underrated market,” OKX president Hong Fang told Cointelegraph during a media event in Sydney on May 14.
“I think there is a very good dynamic and customer mix here,” she added. “Good fundamental customers, the investors, are generally educated and sophisticated. They are interested in technology.”
Fang says Australia offers a “dynamic customer base” for the firm, including both sophisticated traders and others who are interested in crypto but haven’t taken the first step yet.
OKX told Cointelegraph it was opening an Australian office in March last year, explaining there was a “huge appetite” for crypto and it saw the country as “a key growth market.”
The exchange’s Australian-focused services since March 20 moved from a Seychelles-based firm to the on-shore entities OKX Australia Pty Ltd which handles the crypto exchange and fiat services side, and OKX Australia Financial Pty Ltd which handles its derivatives and margin products.
However, Australian laws dictate that local users must pass a suitability assessment and meet the definition of a wholesale client — a legal requirement under the Corporations Act 2001.
Despite the regulatory hurdles, Fang praised Australian regulators for engaging with them in an open and transparent manner.
OKX has also had to stop offering its copy trading, yield-bearing products and trading of some tokens to comply with local laws. Unsupported tokens have been withdrawal-only since March 20.
Related: Australia’s top exchange may approve spot Bitcoin ETFs this year: Report
Fang refrained from speaking in detail about OKX’s payment and banking partners but told Cointelegraph that it doesn't foresee issues with their partners in a similar way that competitor crypto exchange Binance experienced in Australia.
“We really put a lot of [that] work upfront [...] We made sure we evaluate that question before launch and you know, it’s been more than a year. So if we’re doing it now, it means that we feel comfortable. Otherwise, we would not have come to the market,” she said.
The exchange is the third-largest in the world by volume behind Bybit, seeing $2.8 billion in volume over the past day, according to CoinGecko.
Magazine: Crypto City guide to Sydney — More than just a ‘token’ bridge
Update (May 14, 6:04 am UTC): Added additional quotes from OKX President Hong Fang.