It turns out that cryptocurrency exchange licenses in Hong Kong cost applicants several millions.

It turns out that cryptocurrency exchange licenses in Hong Kong cost applicants several million of their own money, which is much lower than the $25 million recorded last year.

In an interview with the Financial Times, Liviu Wang, chief operating officer of HashKey Group, said that cryptocurrency exchange licenses “are not necessarily tens of millions of dollars, but certainly tens of millions of Hong dollars Kong (several million US dollars). ” He explained that “the costs corresponding to the stage of preparation of license review documents differ from the operation stage.” He also mentioned:

“For HashKey, which is already operational, our investment in the entire FX industry is already in the tens of millions of dollars, but that shouldn’t be much for a platform that is still in the licensing phase .”

Since June 1, Hong Kong regulators have expelled all unlicensed cryptocurrency exchanges in the East Asian city, under threat of criminal prosecution for non-compliance. There are currently more than 11 companies with the “deemed approved” designation. As of last year, there were only two fully licensed exchanges: HashKey and OSL.

Wang revealed during the interview that since its launch, HashKey Exchange now manages $500 million in user assets and has facilitated $440 billion in cumulative transactions. “The number of our activated customers this week exceeded last week by 267%, and the number of newly activated customers more than tripled,” said the CEO of the blockchain company.

In April, HashKey followed Coinbase by creating a Bermuda-based global exchange for international users. Unlike its Hong Kong-based counterpart, which was the first to obtain a license to operate in the region, HashKey Global will not serve Hong Kong, China, the United States and many other regions.

The launch of Hong Kong’s exchange licensing system was halted last year, when an unlicensed cryptocurrency exchange, JPEX, despite existing rules, managed to defraud investors out of $166 million before to collapse in September 2023. Since then, residents have become more skeptical. To invest in crypto.

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