OKX announces the suspension of C2C trading services in Taiwan

The globally renowned cryptocurrency exchange platform OKX recently announced that it will delist its C2C customer-to-customer trading service in Taiwan this month, and OKX has also released detailed arrangements and follow-up measures regarding this.

In the announcement, OKX stated that after careful consideration of market business development, it has decided to delist C2C trading in Taiwan. This decision aims to optimize platform resources and enhance user experience.

This "careful consideration of market business" theme is similar to OKX's announcement when they withdrew from Hong Kong business.

The Special Act on Virtual Asset Management is approaching: The Financial Supervisory Commission announced a four-stage management plan, which will be submitted to the Executive Yuan by June 2025.

Important Dates and Schedule

Gradual Phase-Out Schedule

The following is the specific schedule for OKX's gradual phase-out of C2C trading services in Taiwan:

1. From June 18, 2024, the platform will prohibit merchants from posting new orders, and merchants will no longer receive new orders.
2. June 24, 2024, all C2C trading functions will cease operation, and the platform will clear out C2C merchants. Prior to this date, merchants are required to apply online for downgrade, process all ongoing orders and order disputes, and delete all orders.

Impact and Measures

Closure and Deposit Refund

For merchants who fail to complete the above steps in a timely manner, OKX will delete their orders or revoke their merchant status on their behalf and refund the deposit. OKX emphasizes that this phase-out only involves C2C trading functions, and other functions such as deposit and withdrawal and other platform products are not affected and will continue to operate as usual.

Speculation on OKX's Removal of C2C Function

The removal of C2C by OKX may be related to several local currency dealers in Taiwan, as Taiwan has begun actively regulating individual currency dealers and OTC activities, requiring them to engage in virtual currency and fiat exchange services under regulatory constraints.

However, the Taiwan FSC currently does not have penalties for C2C services provided by foreign companies. Whether OKX's removal of C2C will lead to more proactive measures remains to be further understood.