What Is Okcoin (OKX)?
Okcoin(now OKX) isone of the largest cryptocurrency exchangesin the world. Its mission is to make cryptocurrency trading and investing easily accessible to anyone, regardless of where they are.
Keep reading to learn about the platform, some of the concerns, and it's current operations.
Key Takeaways
- Okcoinisone of the largest cryptocurrency exchangesin the world.
- The platform was established in 2013 in China by Mingxing "Star" Xu.
- Based in San Francisco, Okcoin claims to serve more than 1 million investors in 192 countries.
- Regulations affect Okcoin's services in many areas, although the exchange works to serve as many jurisdictions as it can.
- Okcoin is under consolidation and is being globally rebranded to OKX.
History of Okcoin (OKX)
Okcoin (rebranding to OKX) is a private company founded in 2013 in China by Mingxing "Star" Xu. Xu has a background in technology management, including stints at Yahoo and Alibaba, where he worked on developing search algorithms. He was alsothe chief technical officer (CTO) at DocIn.com, a file-sharing service.
Okcoin raised $10 million through two rounds of funding. The last round was completed on Dec. 15, 2017. The company had a total of five investors, notably venture capital firms from China.
The company is headquartered in San Francisco and has offices in San Jose, Hong Kong, Singapore, Malta, and Japan. It employs more than 300 people and has a presence in over 190 countries. According to its website, Okcoin has more than one million investors and traders who actively use the platform.
Since its creation, Okcoin has developed into one of the largest cryptocurrency exchanges in the world by user base and transaction volume. Users can trade Bitcoin and 20 other assets through Okcoin in the U.S. and over 300 assets in many other countries (under its new name, OKX). It has expanded beyond the traditional platform, allowing investors to trade over-the-counter (OTC) "without slippage." The company also released a mobile consumer payment and lending app service, which is available on the Apple App Store and through Google Play.
Concerns About Okcoin (OKX)
Trading and Availability
Trading is available to investors in 192 different countries. U.S. residents can access the platform through Okcoin USA, a money transmitter and registered money services business with the U.S. Treasury Department's Financial Crimes Enforcement Network.
However, the trading service is restricted in the following jurisdictions:
- Hawaii
- New York
- West Virginia
- All U.S. territories
Although it is accessible in most countries, Okcoin (and OKX) prohibits some or all of its services in many countries, including Cuba, Iran, North Korea, Crimea, Donetsk, Luhansk, Uzbekistan, India, and Syria, as well as Bangladesh, Bolivia, and Malaysia.
Regulatory
In 2023, the Federal Deposit Insurance Corporation sent a cease-and-desist letter to Okcoin (and OKX) for falsely advertising that it provides FDIC insurance on U.S. dollar deposits and gained acceptance from the FDIC. As of July 2024, Okcoin (OKX) has removed any content providing claims about being insured by the FDIC and updated its terms of service to clearly state that users' digital assets are not protected.
User Information
While OKX is available in many countries, it only has a three-article educational section dedicated to informing users about the regulatory environment and no information about taxes for the countries in which it operates. With a global user base, the exchange should be more dedicated to informing users about the legal ramifications of trading on OKX and any tax implications. However, the exchange is still young and growing, so its educational content is likely not as robust as it could be.
Current Operations
In 2023, Okcoin announced that it would begin a global rebranding process and consolidation under one name, OKX. It began the process with the Bahamas, Hong Kong, Brazil, Singapore, Australia, and Argentina. In April 2024, Okcoin Europe was rebranded to OKX, with Okcoin USA rebranding scheduled but incomplete as of July 2024.
Is Okcoin a Legitimate Company?
Okcoin (soon to be OKX globally) is a legitimate company registered in many jurisdictions to conduct and facilitate financial transactions.
Is Okcoin Legal in the U.S.?
Okcoin is legal in 47 states. The company is consolidating its brands under the name OKX, which is expected to be available to users in these states.
Is Okcoin a Chinese Company?
Okcoin was established in 2013 and has its headquarters in San Francisco. It is registered to do business in many countries.
The Bottom Line
Similar to other cryptocurrency exchanges, Okcoin's quick rise to prominence within the cryptocurrency world was accompanied by regulatory challenges and other hurdles. However, it overcame many of these obstacles and remains a popular international hub for cryptocurrency transactions.
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