Web3 firms are spending up to $25M on HK crypto licenses: Report

According to a June 27 report by section quality outlet Foresight News, Web3 firms successful Hong Kong are spending anyplace betwixt 20 cardinal to 200 cardinal Hong Kong dollars ($2.55 cardinal to $25.5 million) for the acquisition of a Virtual Asset Licensing Regime (VASP) licenses. Sources explained:

"Since accepted fiscal institutions person nary applicable anterior infrastructure before, and person gone from 0 to 1 successful assorted aspects specified arsenic products and teams, the outgo [associated with VASPs] has been to beryllium precise high. However, adjacent for an experienced cryptocurrency institution, the outgo of obtaining a licence is not cheap."

Analysts astatine Foresight mentioned that Hong Kong subsidiaries of exchanges specified arsenic OKX, BitgetX, HashKey Pro, OSL, and Gate.io person already begun operations. As of June 27, OKX has since grown to 8,800 registered users successful Hong Kong with a cumulative trading measurement of $150 cardinal successful the Special Administrative Region (SAR) of China.

On June 1, Hong Kong unveiled caller VASP licensing requirements for cryptocurrency exchanges. Among galore items, firms indispensable marque due disclosures connected idiosyncratic statistic and institution financials to the Securities and Futures Commission of Hong Kong for regulatory approval. Exchanges that bash not abide by the requirements volition beryllium required to cease operations successful the SAR by mid-next year.

HK moving forward. pic.twitter.com/BY4Bg6qHOu

— CZ Binance (@cz_binance) June 27, 2023

The aforesaid day, the Hong Kong Virtual Asset Consortium (HKVAC) published its virtual plus scale consisting of large cryptocurrencies specified arsenic Bitcoin (BTC) and Ethereum (ETH), alongside altcoins and privateness tokens. The caller enactment seeks to supply ratings services and indices to facilitate retail crypto trading successful the SAR. It is supported by Huobi, Kucoin, Bitget, and others.

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