Hong Kong crypto exchange licenses are now costing applicants millions of dollars, a significant decrease from the $25 million price tag seen a year ago.
In a recent interview with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, mentioned that obtaining crypto exchange licenses in Hong Kong could cost “tens of millions of Hong Kong dollars” (equivalent to several million USD). He highlighted the varying costs involved in preparing license review materials compared to operational expenses.
As of June 1, Hong Kong regulators have cracked down on unlicensed crypto exchanges in the city, threatening non-compliant firms with criminal charges. Currently, there are over 11 companies with a “deemed to be licensed” status, while only two exchanges, HashKey and OSL, hold full licenses.
Wang shared that HashKey Exchange has managed to oversee $500 million in user assets since its inception, facilitating $440 billion in cumulative trades. He noted a significant increase in customer activation rates, indicating a growing interest in the platform.
Following the footsteps of Coinbase, HashKey established a global exchange in Bermuda to cater to international users. Unlike its Hong Kong-based counterpart, HashKey Global excludes Hong Kong, China, the United States, and several other regions from its services.
The implementation of Hong Kong’s exchange licensing framework faced setbacks last year, with an unlicensed crypto exchange called JPEX defrauding investors of $166 million before collapsing in September 2023.
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