Hong Kong cryptocurrency exchange licenses are now costing applicants multiple million-dollar fees, a significant decrease from the $25 million required just a year ago.
In a recent conversation with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, revealed that obtaining crypto exchange licenses in Hong Kong is now costing “not necessarily tens of millions of dollars, but certainly tens of millions of Hong Kong dollars” (equivalent to several million USD).
Wang explained that the expenses involved in preparing the necessary materials for the license review stage differ from those required for the operational stage. He emphasized that since June 1, Hong Kong regulators have cracked down on unlicensed crypto exchanges in the city, threatening criminal charges for non-compliance. Presently, there are over 11 firms with a “deemed to be licensed” status, compared to just two fully licensed exchanges last year: HashKey and OSL.
During the interview, Wang disclosed that HashKey Exchange now oversees $500 million in user assets and has facilitated a total of $440 billion in 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 in the number of new customers.
In April, HashKey expanded its operations by establishing a global exchange in Bermuda, following in the footsteps of Coinbase. Unlike its Hong Kong-based platform, which was the first to secure a license in the region, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions.
The implementation of Hong Kong’s exchange licensing system faced setbacks last year when an unlicensed crypto exchange, JPEX, violated regulations and defrauded investors of $166 million before collapsing in September 2023.