Crypto exchange licenses in Hong Kong are costing applicants significantly less than previously anticipated, according to recent reports.
In an interview with the Financial Times, Livio Wang, Chief Operating Officer of HashKey Group, explained that the cost of obtaining a crypto exchange license is “not necessarily tens of millions of dollars, but certainly tens of millions of Hong Kong dollars [several million in USD].” Wang clarified that the expenses vary depending on the stage of the process:
“The costs associated with preparing license review materials differ from those incurred during the operation stage. For HashKey, which is already operational, our total investment in the exchange sector is indeed tens of millions of dollars, but this is not expected for a platform still in the licensing phase.”
Since June 1, Hong Kong regulators have enforced strict measures, requiring all crypto exchanges to be licensed or face criminal charges. Currently, more than 11 firms hold the “deemed to be licensed” designation, while only two exchanges—HashKey and OSL—have full licenses.
Wang revealed that since its launch, HashKey Exchange manages $500 million in user assets and has processed $440 billion in cumulative trades. “This week, our number of active customers increased by 267% compared to last week, and the number of newly activated customers more than tripled,” he noted.
In April, HashKey followed Coinbase‘s lead by establishing a global exchange based in Bermuda to cater to international users. Unlike its Hong Kong-based exchange, which was the first to secure a license in the region, HashKey Global does not serve Hong Kong, China, the United States, and several other regions.
The rollout of Hong Kong’s exchange licensing regime faced setbacks last year when an unlicensed crypto exchange, JPEX, defrauded investors of $166 million before collapsing in September 2023. This incident has led to increased skepticism about crypto investments among residents.
Summary Review: While the cost of obtaining a crypto exchange license in Hong Kong is lower than expected, the regulatory environment remains stringent. HashKey’s success despite these challenges demonstrates the potential for regulated exchanges to thrive, although investor confidence continues to be influenced by past fraudulent activities.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
