OKX to Expand to the U.S., Establish Regional Headquarters in California

Seychelles-based cryptocurrency exchange OKX is expanding to the U.S., establishing a new regional headquarters in San Jose, California and rolling out access to its platform and its native OKX Wallet to U.S.-based crypto traders.

In a Tuesday evening announcement, newly-appointed CEO Roshan Robert said the expansion was “a commitment to responsible growth.” Robert was most recently an executive at institutional crypto lending platform CLST, and was a founding team member of crypto prime broker Hidden Road, which was recently acquired by Ripple for $1.25 billion.

“As regulations evolve, OKX is working closely with US regulators and policymakers to ensure we operate transparently and compliantly,” Robert wrote. “We’ve built a comprehensive, risk-based global compliance program that includes enhanced due diligence, a robust KYC process, customer risk rating systems, advanced fraud detection, AML tools, geo-blocking, and market surveillance technologies. These are all part of our commitment to a secure, compliant trading environment.”

Two months ago, a subsidiary of OKX settled charges that it had operated in the U.S. without a money transmitting license, agreeing to pay the Department of Justice (DOJ) over $500 million in penalties and forfeited fees. The DOJ alleged that, despite having an official policy prohibiting U.S.-based users from accessing its platform, OKX “sought out customers in the United States, including in the Southern District of New York.”

Read more: After Binance’s $4.3B Lesson, Do Rival Exchanges Risk Running Afoul of U.S. Rules?

OKX is not the first crypto company to eye an expansion or a return to the U.S., which has grown considerably friendlier to the crypto industry under U.S. President Donald Trump’s administration. Earlier this month, token launch platform CoinList announced a return to the U.S. after five years away, and bigger names — including Binance, the world’s largest crypto exchange — are reportedly considering returning to the U.S.

Existing customers of OKCoin, the U.S.-accessible sister company of OKX, will be “seamlessly migrated” to the OKX platform, which will offer customers “deeper liquidity, lower fees and advanced trading tools,” according to the company’s launch announcement.