Web3 companies in Hong Kong are spending a significant amount of money to obtain Virtual Asset Service Provider (VASP) licenses, as reported by local news outlet Foresight News.
These firms are making substantial investments, ranging from 20 million to 200 million Hong Kong dollars ($2.55 million to $25.5 million), to ensure compliance with the new regulations.
Leading exchanges’ Hong Kong subsidiaries, including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, have already started their operations in the region, demonstrating their early adoption of these regulations.
As of June 1, Hong Kong implemented comprehensive licensing requirements for cryptocurrency exchanges, mandating proper disclosures on user statistics and company financials to the Securities and Futures Commission of Hong Kong. Non-compliant exchanges are required to cease operations in the special administrative region by the middle of next year.
Concurrently, the Hong Kong Virtual Asset Consortium launched its virtual asset index, which includes major cryptocurrencies like Bitcoin, as well as altcoins and privacy tokens. The consortium’s goal is to provide rating services and indexes to improve retail crypto trading in Hong Kong. The involvement of prominent players such as Huobi, KuCoin, and Bitget adds to its credibility.
These developments demonstrate Hong Kong’s commitment to establishing a strong regulatory framework for the growing web3 industry. By implementing rigorous licensing requirements and promoting transparency, the region aims to foster a secure and thriving digital asset ecosystem.
The emergence of licensed exchanges and the establishment of the virtual asset index reflect the SAR’s determination to facilitate responsible and regulated growth in the digital asset space.
Compiled by Coinbold
