Web3 firms spend $25M on HK crypto licenses.

As reported on June 27 by local news source Foresight News, Web3 companies in Hong Kong are spending between 20 million to 200 million Hong Kong dollars ($2.55 million to $25.5 million) to obtain Virtual Asset Licensing Regime (VASP) licenses. Sources explained:

“Since traditional financial institutions have no prior relevant infrastructure, and have had to create various aspects from scratch such as products and teams, the cost [associated with VASPs] has been very high. However, even for an experienced cryptocurrency institution, the cost of obtaining a license is not cheap.”

Foresight analysts reported that Hong Kong subsidiaries of exchanges such as OKX, BitgetX, HashKey Pro, OSL, and Gate.io have already started their operations. As of June 27, OKX has grown to 8,800 registered users in Hong Kong with a cumulative trading volume of $150 million in the Special Administrative Region (SAR) of China.

On June 1, Hong Kong released new VASP licensing requirements for cryptocurrency exchanges. Among the many requirements, firms must make proper disclosures on user statistics and company financials to the Securities and Futures Commission of Hong Kong for regulatory approval. Exchanges that do not comply with the requirements will be required to cease operations in the SAR by mid-next year.

HK moving forward. pic.twitter.com/BY4Bg6qHOu

— CZ Binance (@cz_binance) June 27, 2023

On the same day, the Hong Kong Virtual Asset Consortium (HKVAC) published its virtual asset index consisting of major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), alongside altcoins and privacy tokens. The new organization seeks to provide ratings services and indices to facilitate retail crypto trading in the SAR. It is supported by Huobi, Kucoin, Bitget, and others.

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