Hong Kong Crypto Exchange Licenses Costs Fall as HashKey Group Reports Surge in User Growth
Summary:
Acquiring crypto exchange licenses in Hong Kong is costing applicants millions, drastically less than the previous year's $25 million. HashKey Group's chief operating officer, Livio Wang, detailed the costs during an interview, noting that while a platform in the licensing stage isn't expected to reach such large amounts, HashKey has invested tens of millions, having obtained its license. Furthermore, since launching, HashKey Exchange now manages $500 million in user assets and has recorded $440 billion in trades. Wang also highlighted the exceptional growth experienced this week, with a 267% surge in active customers. Meanwhile, Hong Kong's licensing regime experienced a setback last year when unlicensed exchange JPEX scammed investors of $166 million before collapsing, resulting in increased skepticism among residents towards crypto investing.
Emerging reports indicate that acquiring cryptocurrency exchange licenses in Hong Kong is amassing substantial fees for applicants, markedly less than the $25 million recorded from the previous year. Livio Wang, HashKey Group's Chief Operating Officer, revealed in a conversation with the Financial Times that securing these licenses requires substantial costs, ranging into several million US dollars, but falling below ten million dollars. He clarified that the figures associated with assembling and reviewing the necessary documentation for a license are distinct from the costs tied to the operational phase. He added: "HashKey, already operational, has indeed invested tens of millions, but a platform yet to obtain its license isn't expected to reach such figures."
As of June 1, Hong Kong's regulatory bodies have expelled all cryptocurrency exchanges operating without licenses, enforcing criminal charges for violations. At present, over 11 establishments have secured the "deemed to be licensed" label. By the end of last year, only HashKey and OSL managed to become fully licensed.
Wang further disclosed that HashKey Exchange has since its inauguration, managed assets valued at $500 million from users, and recorded cumulative trades worth $440 billion. He noted, "The count of our active customers this week has surged by 267% compared to the last, with the number of new customers also tripling."
In April, following Coinbase's footsteps, HashKey established a global exchange in Bermuda aimed at international customers. Contrary to its native Hong Kong exchange, which was the first to secure an operational license, HashKey Global will not provide services to Hong Kong, China, the United States, and several other regions.
The implementation of Hong Kong's exchange licensing was hindered last year when an unlicensed cryptocurrency exchange, JPEX, was able to defraud investors of $166 million before eventual total failure in September 2023. This has led to heightened skepticism around cryptocurrency investments among the residents. Related: Mt Gox retains its Bitcoin instead of selling, Hong Kong expels cryptocurrency exchanges.
Published At
6/3/2024 6:32:16 PM
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