Hong Kong crypto exchange licenses are now costing applicants several million dollars, a significant decrease from the $25 million price tag seen a year ago.
In an exclusive interview with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, disclosed that the crypto exchange licenses are now priced in “tens of millions of Hong Kong dollars,” translating to several million in USD. Wang clarified that the costs associated with preparing license review materials differ from those required for the operational stage.
Starting from June 1, Hong Kong regulators have cracked down on all unlicensed crypto exchanges in the East Asian city, with potential criminal charges for those found to be noncompliant. Presently, there are over 11 firms with the “deemed to be licensed” status. As of last year, only two exchanges were fully licensed: HashKey and OSL.
Wang shared in the interview that HashKey Exchange now oversees $500 million in user assets since its inception and has facilitated $440 billion in cumulative trades. He highlighted a significant increase in activated customers, with a 267% rise compared to the previous week and a tripling in the number of newly activated customers.
In April, following the footsteps of Coinbase, HashKey established a global exchange based in Bermuda to cater to international users. Unlike its Hong Kong-based counterpart, which was the first to secure a license in the region, HashKey Global will not operate in Hong Kong, China, the United States, and various other regions.
The introduction of Hong Kong’s exchange licensing framework faced setbacks last year when an unlicensed crypto exchange, JPEX, defrauded investors of $166 million before collapsing in September 2023.
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