Crypto Exchange OKX Eyes U.S. IPO After April Relaunch

Prominent crypto exchange OKX is gearing up for a potential Initial Public Offering (IPO) in the United States. This move comes two months after the exchange relaunched its operations in the country.

In February, OKX settled with the U.S. Department of Justice for approximately $500 million. The exchange was accused of operating as an unlicensed money-transmitting business and failing to meet U.S. anti-money laundering (AML) requirements. According to the authorities, OKX processed more than $1 trillion in trades for U.S. users despite policies suggesting otherwise.

In April, OKX announced its return to the U.S. market. The company set up a regional headquarters in San Jose, California. It also appointed Roshan Robert, a former executive at Morgan Stanley and Barclays, as its U.S. CEO. At the time, Robert stated that the firm’s re-entry reflected a commitment to responsible growth. He added that OKX was working closely with regulators to stay compliant.

OKX to Explore U.S. IPO

OKX has been working to rebuild its reputation, particularly in the eyes of U.S. regulators. The firm also unveiled a self-custody Web3 wallet and a revamped centralized exchange platform following its relaunch in the country.

A listing on a U.S. stock exchange would mark a significant shift for this exchange. This is because it could potentially open the door to greater institutional trust and a broader investor base. 

Furthermore, it would offer new capital to accelerate OKX’s global expansion and service innovation. However, it is worth mentioning that the company has not yet filed paperwork with the SEC, and the timeline remains unclear.

Crypto IPO Momentum

OKX’s potential IPO aligns with a broader trend of crypto firms seeking public listings amid a booming crypto stock market. The industry is also experiencing a favourable regulatory shift, which has increased investor interest.

Exchanges like Gemini, Kraken, and Ripple are in talks to launch an IPO. Stablecoin issuer Circle recently expanded its IPO to $1.05 billion, setting its share price above the previously announced range.

Meanwhile, OKX might still need to navigate scrutiny despite improved regulatory compliance.  In May, Thailand’s Securities and Exchange Commission announced plans to shut down the exchange for allegedly operating without a license.