Hong Kong Crypto Exchange Licenses Now Cost Less Millions

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As a researcher with a background in finance and experience in the crypto industry, I find Hong Kong’s recent regulatory changes towards crypto exchanges quite intriguing. The new licensing fees, which are reportedly several million USD in local currency, seem to be more accessible for smaller players, making way for a more diverse market.

The cost for obtaining crypto exchange licenses in Hong Kong has been reduced significantly, now ranging from millions of US dollars instead of the previous $25 million asking price in 2023. Livio Wang, COO of HashKey Group, explained that this equates to several tens of millions in Hong Kong currency.

Wang explained that the costs vary between the preparation and the operation stage. Established entities like HashKey, the investment in the entire exchange sector has reached tens of millions of dollars. However, platforms still in the licensing stage are expected to incur lower costs.

Starting from June 1, Hong Kong authorities have implemented a tough policy, forcing out unauthorized crypto exchange platforms and warning of potential legal consequences for disobedience. At present, HashKey and OSL are the sole exchanges that have obtained full licenses. Over a dozen other companies are still in the process of obtaining their licenses.

As a crypto investor, I’ve noticed that some exchanges like OKX, Gate, and Huobi have withdrawn their license applications due to regulatory pressures. This news has caused ripples in the market. However, HashKey Exchange has managed to expand, currently holding $500 million worth of user funds and processing a staggering cumulative trade volume of $440 billion. The number of active customers on our platform has skyrocketed by 267% within just a week.

In the month of April, HashKey introduced a new global cryptocurrency exchange based in Bermuda, catering to users outside Hong Kong, China, the United States, and other areas, as a response to the shutdown of JPEX, an unlicensed trading platform that swindled investors out of $166 million in 2023.

As a crypto investor, I’m excited to see Hong Kong’s financial authorities taking a bold step forward in regulating the virtual asset industry under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Starting from now, any institution without a “Virtual Asset Service Provider” license is barred from operating within the city. This means more transparency, security, and trust in our crypto investments.

Hong Kong is shifting its focus to establish itself as a leading crypto hub, striking a chord between investor security and the thriving digital asset market. Certain initiatives in the city aim to position it alongside Dubai and Singapore as major players in the digital asset sector. This development could make Hong Kong an attractive alternative for Mainland China, where crypto trading is prohibited.

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2024-06-04 01:41