Hong Kong crypto exchange licenses now come with a hefty price tag, costing applicants several million dollars, a stark contrast from the $25 million fee observed just a year ago.
In an exclusive interview with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, revealed that acquiring crypto exchange licenses in Hong Kong is not just expensive in terms of US dollars, but also amounts to tens of millions in Hong Kong dollars.
Wang clarified that the expenses involved in preparing for the license review phase differ from those incurred during the operational stage. He emphasized that Hong Kong regulators have cracked down on unlicensed crypto exchanges in the city since June 1, threatening criminal charges for non-compliance. Currently, more than 11 companies hold the “deemed to be licensed” status, while only two exchanges, HashKey and OSL, are fully licensed.
During the interview, Wang disclosed that HashKey Exchange has successfully managed $500 million in user assets since its inception, facilitating a total of $440 billion in trades. He also noted a significant surge in customer activation, with a 267% increase in activated customers compared to the previous week, and a more than threefold rise in newly activated customers.
In a strategic move following the footsteps of Coinbase, HashKey established a global exchange in Bermuda in April to cater to international users. However, unlike its Hong Kong-based platform, which obtained the first license in the region, HashKey Global will not cater to clients in Hong Kong, China, the United States, and various other regions.
The implementation of Hong Kong’s exchange licensing framework faced setbacks last year when an unlicensed crypto exchange named JPEX violated regulations, defrauding investors of $166 million before collapsing in September 2023.