Introduction
OKX, a leading cryptocurrency exchange, has officially published its fourth Proof of Reserves (POR) report. The latest audit reveals that the platform maintains reserve ratios exceeding 100% for major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). This demonstrates a strong commitment to transparency and user asset security.
Monthly data indicates substantial net inflows of user reserves, reflecting growing trust and adoption. The exchange continues to enhance its verification methods and expand its global regulatory compliance efforts.
Proof of Reserves: Key Findings
The most recent POR report, released in February 2023, shows the following reserve ratios:
- BTC reserves: 104%
- ETH reserves: 104%
- USDT reserves: 102%
These ratios confirm that OKX holds more than enough assets to cover all user balances.
In addition, the exchange reported significant growth in user deposits over the previous month:
- BTC holdings increased by 9.9%, equivalent to 12,982 BTC
- ETH holdings grew by 8.5%, or 109,511 ETH
- USDT reserves rose by 3.2%, adding 98,174,170 USDT
This represents a net inflow of approximately $602 million based on current market values.
Commitment to Transparency and Verification
OKX stands out by implementing multiple layers of verifiable transparency:
- Open-source Merkle tree verification
- Publicly verifiable wallet address ownership
- On-chain asset verification
These measures allow users to independently confirm that their funds are fully backed. The exchange also commits to publishing updated POR reports every month, a practice that sets a high standard in the industry.
Global Licensing and Regulatory Compliance
With increasing regulatory focus on crypto worldwide, OKX is actively pursuing licenses in more than 15 jurisdictions. The company has already obtained operational licenses in The Bahamas and Dubai.
A significant development is the exchange’s strategic focus on the Hong Kong market. Following the announcement of new licensing rules—effective June 1, 2023, by the Securities and Futures Commission (SFC) of Hong Kong—OKX has intensified its efforts to comply and operate under the regulatory framework.
👉 Explore more licensing updates and compliance strategies
Lennix Lai, Managing Director of Global Institutional at OKX, stated that the company began preparing its Hong Kong license application a year in advance. A dedicated team of over 20 compliance professionals—with backgrounds in the SFC, SEC, international law firms, and licensed financial institutions—is overseeing the process.
The firm is aligning its operations with SFO Type 1 and Type 7 regulatory standards. This includes structural adjustments, revising token listing procedures, enhancing market surveillance, and ensuring strict segregation of client funds.
Currently, OKX employs more than 400 people in Hong Kong, primarily in product development and compliance roles. The company has also expressed ongoing support for blockchain and Web3 innovation in the region.
Frequently Asked Questions
What is Proof of Reserves (POR)?
Proof of Reserves is an auditing method used by cryptocurrency exchanges to prove they hold sufficient reserves to cover all customer balances. It often uses cryptographic techniques like Merkle trees for verification.
How often does OKX publish POR reports?
OKX releases a Proof of Reserves report every month. This regular update promotes transparency and allows users to monitor the platform’s solvency consistently.
Why are reserve ratios above 100% important?
A reserve ratio over 100% means the exchange holds more assets than needed to cover user withdrawals. This reduces risk and increases user confidence in the platform’s stability.
What is OKX doing to comply with regulations in Hong Kong?
OKX has established a specialized compliance team and is adapting its business structure, listing process, and monitoring systems to meet SFC requirements. The goal is to operate under Type 1 and Type 7 licenses.
Can users verify OKX’s reserves themselves?
Yes. OKX provides open-source tools for users to verify Merkle tree proofs, wallet ownership, and on-chain reserves independently.
Is OKX planning to support Web3 development in Hong Kong?
Yes. The company has committed to supporting blockchain and Web3 growth initiatives in Hong Kong through compliance, innovation, and local investment.
Conclusion
OKX continues to strengthen its position through rigorous transparency measures and proactive regulatory engagement. With strong reserve ratios, growing user assets, and a clear compliance roadmap, the exchange is well-positioned for sustained growth.
For those interested in learning more about the platform’s features and security measures, you can review detailed guides and current updates. As global regulations evolve, OKX remains focused on building a trusted and compliant ecosystem for users worldwide.