Hong Kong crypto exchange licenses are now costing applicants several million dollars, a significant decrease from the $25 million price tag seen a year ago.
In an exclusive interview with the Financial Times, Livio Wang, the chief operating officer of HashKey Group, disclosed that the crypto exchange licenses are not in the tens of millions of dollars range, but certainly in the tens of millions of Hong Kong dollars which translates to several million in USD.
Wang clarified that the expenses related to preparing license review materials differ from those incurred during the operational stage. He elaborated:
Since June 1, Hong Kong regulators have taken decisive action against all unlicensed crypto exchanges in the East Asian city, with the threat of criminal charges for noncompliance. Currently, more than 11 firms have been given the “deemed to be licensed” designation. Last year, only two exchanges were fully licensed: HashKey and OSL.
During the interview, Wang disclosed that HashKey Exchange, since its inception, now oversees $500 million in user assets and has facilitated $440 billion in cumulative trades.
“Our active customer base this week has surged by 267% compared to last week, with the number of new customers more than tripling,” shared the blockchain executive.
In April, HashKey emulated Coinbase by launching a global exchange based in Bermuda to cater to international users. Unlike its Hong Kong-based counterpart, which was the pioneer in obtaining a license to operate in the region, HashKey Global will not serve Hong Kong, China, the United States, or several other regions.
The implementation of Hong Kong’s exchange licensing framework faced setbacks last year when an unlicensed crypto exchange, JPEX, managed to defraud investors of $166 million before collapsing in September 2023.
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