According to local news outlet Foresight News, Web3 companies based in Hong Kong are reportedly investing between HK$20 million to HK$200 million (US$2.55 million to US$25.5 million) to obtain virtual asset service provider (VASP) licenses. The high costs ass oriented with acquiring these licenses are attributed to the need for upfront infrastructure development, which traditional financial institutions often lack in terms of products and teams. Even experienced cryptocurrency institutions find the cost of obtaining a VASP license to be substantial. Several Hong Kong-based subsidiaries of exchanges , including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, have already commenced operations in compliance with the new requirements.
On June 1. Hong Kong introduced new VASP licensing regulations for cryptocurrency exchanges. To gain regulatory approval, companies must adhere to various requirements such as disclosing user statistics and company financial information to the Securities and Futures Commission of Hong Kong Kong. Failure to comply with these regulations will result in exchanges being required to cease operations in the region by mid-2024. Additionally, the Hong Kong Virtual Asset Alliance launched a virtual asset index on the same day, comprising major cryptocurrencies like Bitcoin and Ether, as well as altcoins and privacy coins. This newly established organization aims to offer rating services and indices to facilitate retail cryptocurrency transactions in Hong Kong, with support from companies such as Huobi, KuCoin, and Bitget.
