Web3 Companies Splurge Up to $25 Million on Cryptocurrency Licenses in Hong Kong, Reveals Report

A recent report by local news outlet Foresight News reveals that Web3 companies in Hong Kong are investing significant amounts of money, ranging from 20 million to 200 million Hong Kong dollars ($2.55 million to $25.5 million), to acquire Virtual Asset Licensing Regime (VASP) licenses. The high costs associated with obtaining these licenses are attributed to the need for traditional financial institutions to establish new infrastructure and build teams from scratch.

Leading cryptocurrency exchanges such as OKX, BitgetX, HashKey Pro, OSL, and Gate.io have already commenced operations in Hong Kong through their subsidiaries. As of June 27, OKX has gained 8,800 registered users in the region, with a cumulative trading volume of $150 million.

Hong Kong introduced new VASP licensing requirements for cryptocurrency exchanges on June 1. These regulations mandate exchanges to disclose user statistics and company financials to the Securities and Futures Commission of Hong Kong for regulatory approval. Failure to comply with the requirements will result in exchanges being required to cease operations in Hong Kong by mid-next year.

Simultaneously, the Hong Kong Virtual Asset Consortium (HKVAC) unveiled its virtual asset index, featuring major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as altcoins and privacy tokens. The consortium aims to provide rating services and indices to facilitate retail cryptocurrency trading in Hong Kong, and it has received support from industry players such as Huobi, Kucoin, and Bitget.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you