Hong Kong Virtual Asset Service Providers Face Licensing Transition

According to Odaily, the transition period for licensing of Virtual Asset Service Providers (VASP) in Hong Kong is set to end this month. The Securities and Futures Commission will decide whether existing service providers can continue to operate after June. Recently, several platforms have withdrawn their local license applications. Former Chairman of the Hong Kong Computer Society, Xu Jiansheng, believes that the cost of operating trading platforms in Hong Kong is relatively high. This includes licensing fees and the hiring of responsible personnel. There has not been a significant increase in trading on existing local platforms, and their liquidity is not as high as overseas platforms. These platforms have been unable to attract overseas customers, and the market may not be able to accommodate many license applicants. Large international platforms with mature overseas businesses may withdraw their applications due to profitability issues in the local market.