Hong Kong crypto exchange licenses are now costing applicants several million dollars, a significant drop from the $25 million price tag just a year ago.
In a recent conversation with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, noted that acquiring crypto exchange licenses in Hong Kong now costs “not necessarily tens of millions of dollars, but certainly tens of millions of Hong Kong dollars” (equivalent to several million in USD). He emphasized that the expenses for preparing license review materials differ from those incurred during the operational stage.
Since June 1, regulators in Hong Kong have expelled all unlicensed crypto exchanges from the city, with offenders facing criminal charges for noncompliance. Presently, more than 11 companies have been granted the “deemed to be licensed” status, while just two exchanges, HashKey and OSL, hold full licenses.
During the interview, Wang disclosed that HashKey Exchange has amassed $500 million in user assets since its inception and has facilitated $440 billion in total trades. He also highlighted a significant increase in the number of activated customers, with a 267% rise from the previous week and more than triple the number of new customers.
In April, HashKey expanded its operations by establishing a global exchange in Bermuda, following the footsteps of Coinbase. Unlike its Hong Kong-based platform, which was the first to secure a license for the region, HashKey Global will not cater to clients in Hong Kong, China, the United States, and various other regions.
The launch of Hong Kong’s exchange licensing system faced a setback last year when an unlicensed crypto exchange, JPEX, flouted regulations and defrauded investors of $166 million before collapsing in September 2023.
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