As companies compete to obtain Web3 talent for licensing, VASP costs range from 20 million to 200 million Hong Kong dollars.
Purchasing licenses for the Virtual Asset Licensing Regime (VASP) is apparently costing Web3 companies in Hong Kong considerable sums ranging from 20 million to 200 million Hong Kong dollars ($2.55 million to $25.5 million), according to a story from Foresight News on June 27th. This investment demonstrates the firms’ dedication to adhering to Hong Kong’s new regulatory standards.
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In the research, analysts noted that a number of well-known exchanges’ Hong Kong subsidiaries, including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, had already started operating. This shows that they are equipped to negotiate the regulatory environment and interact with the local market.
Related: HSBC Launches Crypto Services in Hong Kong
One of the exchanges listed, OKX, had amassed 8,800 registered users in Hong Kong as of June 27th and had generated a total trading volume of $150 million in the area. This shows the Special Administrative Region (SAR) of China’s users’ growing interest in and involvement in cryptocurrency trading.
Hong Kong updated its VASP licensing rules for regional bitcoin exchanges on June 1. The supply of appropriate disclosures regarding user statistics and business financials, which must be submitted for regulatory approval to the Securities and Futures Commission of Hong Kong, is one of these requirements.
By the middle of next year, exchanges will be forced to stop operating in the SAR if they don’t meet these conditions.
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The publication of the virtual asset index, which includes popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as altcoins and privacy tokens, was announced by the Hong Kong Virtual Asset Consortium (HKVAC) on the same day. This organization was founded with the intention of offering ratings services and indexes to ease retail crypto trading within the SAR. Notably, organizations like Huobi, Kucoin, and Bitget promote it.
Related: Hong Kong's Cyberport becomes a Web3 hub, attracting 150 firms in a year