Hong Kong-based Web3 firms are investing significant amounts, ranging from HKD 20 million to HKD 200 million ($2.55 million to $25.5 million), to secure Virtual Asset Service Provider (VASP) licenses. The high costs can be attributed to the lack of existing infrastructure in traditional financial institutions. Several exchanges, including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, have already commenced operations in Hong Kong. OKX alone has garnered 8,800 registered users and achieved a cumulative trading volume of $150 million in the region. New VASP licensing requirements were introduced on June 1, necessitating proper disclosures and compliance with regulatory standards, with non-compliant exchanges facing closure by mid-2024. Additionally, the Hong Kong Virtual Asset Consortium has launched an asset index, supported by Huobi, KuCoin, Bitget, and others, to facilitate retail cryptocurrency trading.Hong Kong-Based Web3 Firms Investing Millions to Obtain VASP Licenses
