- These are the costs of creating infrastructure, filing an application and other processes
- The most expensive license costs TradFi companies
Foresight News journalists compiled report on the procedure for obtaining a license to work with digital assets (VASP) in Hong Kong. For candidates, this process costs a round sum of 20 million to 200 million Hong Kong dollars (from $2.55 million to $25.5 million).
The final figure depends on many things. Traditional financial institutions (eg banks) cost the most to obtain a license. After all, they need to build a blockchain infrastructure from scratch. But even for experienced crypto firms, approval in Hong Kong comes at a high cost.
Amid growing scrutiny from US regulators, crypto firms are eyeing Hong Kong. It enjoys an advantageous strategic position and industry-friendly rules.
On June 1, a new regulatory framework began to operate in the region. It provides protection for investors, but at the same time creates a favorable environment for cryptography. Companies operating in Hong Kong must disclose their financial performance and user information to the regulator. Exchanges that do not comply with such requirements are required to exit the market by mid-2024.
OKX, BitgetX, HashKey Pro, OSL and Gate.io have already issued their license in this region.
Hong Kong plans to become a virtual asset hub and act as China’s gateway to the world of cryptocurrencies. At the same time, Singapore and Dubai remain strong competitors in the region.