Hong Kong crypto exchange licenses are now costing applicants several million dollars, a significant decrease from the $25 million price tag seen just a year ago.
In a recent conversation with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, mentioned that acquiring crypto exchange licenses does not necessarily require tens of millions of dollars, but certainly amounts to tens of millions of Hong Kong dollars (equivalent to several million USD).
Wang elaborated that the costs associated with preparing the licensing review materials are distinct from those incurred during the operational phase. He went on to explain that since June 1, regulators in Hong Kong have expelled all unlicensed crypto exchanges from the city, with the risk of facing criminal charges for noncompliance. Presently, there are more than 11 firms designated as “deemed to be licensed,” while only two exchanges, HashKey and OSL, have obtained full licenses.
During the interview, Wang disclosed that since its inception, HashKey Exchange has overseen $500 million in user assets and facilitated $440 billion in cumulative trades. He also noted a significant increase in the number of activated customers, with a 267% rise in the past week and a tripling in the number of newly activated customers.
In April, following in the footsteps of Coinbase, HashKey established a global exchange in Bermuda to cater to international users. Unlike its Hong Kong-based counterpart, which was the first to secure a license to operate in the region, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions.
Last year, the implementation of Hong Kong’s exchange licensing system faced setbacks when an unlicensed crypto exchange, JPEX, managed to defraud investors of $166 million before collapsing in September 2023.