Hong Kong Crypto Exchange Licenses Cheaper Than Expected
2 min read
Hong Kong Crypto Exchange Licenses Cheaper Than Expected
License fees for cryptocurrency exchanges in Hong Kong have significantly dropped from their previous highs. Livio Wang, the Chief Operating Officer of HashKey Group, discussed the current costs of obtaining a crypto exchange license with the Financial Times. He indicated that while these licenses don’t cost tens of millions in US dollars, they do amount to several million when converted from Hong Kong dollars. Wang clarified that the expenses vary depending on whether a platform is merely preparing for a license review or already operating.
During the interview, Wang explained the financial dynamics involved. He mentioned that for fully operational exchanges like HashKey, the investment spent on the entire exchange sector reaches tens of millions of dollars. For platforms still in the licensing phase, the costs are significantly lower. This makes the financial burden lighter for newer entrants compared to established players.
Since the beginning of June, Hong Kong’s regulators have been strict about compliance. All unlicensed crypto exchanges were ousted from the market, and noncompliance now comes with criminal charges. Presently, there are over 11 firms that hold the “deemed to be licensed” status. In contrast, as of last year, only two exchanges had obtained full licenses: HashKey and OSL.
Wang also shared how HashKey Exchange has grown since its inception. According to him, the platform now oversees $500 million in user assets and has carried out $440 billion in trades. The exchange has shown significant growth in its user base; just recently, the number of activated customers surged by 267% compared to the previous week, and newly activated users more than tripled.
To expand its global footprint, HashKey initiated a new venture in April by setting up an international exchange in Bermuda, mimicking the strategy of Coinbase. Unlike its Hong Kong-based entity, the new Bermuda-based exchange will not cater to users in Hong Kong, China, the United States, or several other regions. This expansion aims to capture the international market without overlapping with their original target demographics.
The establishment of Hong Kong’s stringent exchange licensing framework faced initial challenges. Despite existing regulations, an unlicensed exchange named JPEX managed to defraud investors of $166 million before collapsing in September 2023. This incident highlighted the necessity for robust enforcement of regulatory standards.
Hong Kong’s approach to crypto exchange licensing has evolved over the past year. The regulatory measures seem to be paying off, at least partially, by preventing unlicensed operations and encouraging more legitimate exchanges to secure proper licensing. This shift is likely paving the way for a more secure and stable crypto trading environment in the region.
The landscape for crypto exchanges in Hong Kong has undergone significant changes. While initial investments for new entrants are now lower, regulatory compliance remains stringent. HashKey’s progress signifies the growing maturity and expanding reach of the cryptocurrency market in Asia.
JPEX scammed people for $166 millionthis proves regulatory measures are far from effective.
Activating so many users in such a short time feels fishy. Are they really vetting these new customers properly?
This ‘deemed to be licensed’ status is just confusing. Either you’re licensed or you’re not! 😕
I can’t believe they let something like JPEX happenregulation is clearly not working well enough.
Brilliant strategy by Hong Kong! Reduced fees encourage more participants, ensuring a vibrant crypto ecosystem!
Such a positive change! Hong Kong continues to be a global leader in cryptocurrency advancements.
Positive changes in HKs crypto regulations! Lower fees will foster more growth. Excellent job, HashKey!
Fantastic news by Livio Wang and financial insights on HK’s crypto market! Lower fees leading to broader opportunities!
Lower license costs are a smart move to boost the crypto ecosystem in Hong Kong. Exciting development!
Millions in licensing fees still sounds exorbitant. This is just a game for the rich!
What a fantastic move by Hong Kong regulators! Lower costs but strict compliance make for a safer market. 🚀
Kudos to Hong Kong for creating a more accessible environment for crypto ventures! Exciting times ahead for new entrants.
Amazing news for new crypto start-ups! Hong Kong’s regulatory shift is paving the way for a better trading environment. 🌟
Impressive! Hong Kong making it easier for new crypto exchanges while ensuring compliance. HashKey leads the way!
Cheers to more inclusive market conditions! Lower licensing costs equal more competition and innovation!
Fantastic update! Hong Kong is making moves in the crypto world. HashKey’s growth is truly inspiring! 🚀
Expanding to Bermuda is a red flag to me. Seems like they’re looking for more lenient laws to exploit.
HashKey’s growth story is so inspiring! Lower licensing fees will help more platforms achieve similar success.
Great read! Lower fees mean more innovation and competition in the crypto exchange market. Go Hong Kong! 🚀
Hong Kong is leading the charge in crypto regulations! Lower fees simplify entry for new exchanges.
Why are initial investments lower for new exchanges? Shouldn’t compliance standards be the same for everyone? ⚠️
Wasn’t the whole point of crypto to be decentralized? Why all these barriers and fees?
The criminal charges for noncompliance sound harsh, but necessary. Wish they had stricter checks before things go wrong!
Absolutely brilliant! Hong Kong is setting a precedent for other regions. Go, HashKey! 🌟
Paying ‘several millions’ for a license is still way too high. Feels like they’re just trying to milk money out of new exchanges.
Superb move by HK regulators! Lower fees, secure environment – great for new and existing players!
This reduction in license fees is a game-changer for emerging exchanges. Hong Kong FTW! 🌟
Existing big players like HashKey still invest tens of millions while new players get an easier entry point. Doesn’t seem fair at all! 😤
Lower licensing fees but still stringent compliance is a win-win! Hong Kong crypto market is on the rise!
Great to hear that license fees for crypto exchanges in Hong Kong have dropped! This opens up opportunities for new players. Go HashKey! 🚀
Lower license fees = More innovation! Happy to see Hong Kong nurturing the crypto space. 🌟
Great initiative by Hong Kong! Lower fees will encourage more innovation. Way to go, HashKey!
Exciting developments in HK’s crypto space! Lower fees will nurture a stronger market. Go, HashKey! 🚀
Way to go, Hong Kong! Lowering fees but keeping compliance shows the right balance. HashKey is thriving!
Why does HashKey brag about their numbers? That doesn’t assure us of their long-term stability. 🚩