The cost of obtaining a crypto exchange license in Hong Kong has significantly decreased from the $25 million price tag seen a year ago. Livio Wang, the chief operating officer of HashKey Group, revealed in an interview with the Financial Times that while the licenses are still expensive, they now range in the “tens of millions” of Hong Kong dollars, equivalent to several million USD.
Wang explained that the costs associated with preparing the license application materials differ from those incurred during the operational stage. Since June 1, Hong Kong regulators have cracked down on unlicensed crypto exchanges in the city, threatening criminal charges for noncompliance. Currently, there are over 11 firms designated as “deemed to be licensed,” with only two fully licensed exchanges, HashKey and OSL, as of last year.
During the interview, Wang disclosed that HashKey Exchange now manages $500 million in user assets and has facilitated $440 billion in total trades since its inception. He also mentioned a significant increase in the number of activated customers, with a 267% rise from the previous week and a tripling of newly activated customers.
In April, following the lead of Coinbase, HashKey established a global exchange based in Bermuda to cater to international users. Unlike its Hong Kong-based counterpart, HashKey Global will not serve customers in Hong Kong, China, the United States, and various other regions. The launch of Hong Kong’s exchange licensing system faced setbacks last year when an unlicensed exchange, JPEX, defrauded investors of $166 million before collapsing in September 2023.
Related:
Mt. Gox is not yet liquidating Bitcoin holdings, while Hong Kong is expelling unlicensed crypto exchanges.