- The cost of the procedure starts at $30 million, at the most conservative estimate
- This cost is dictated by the high requirements for the custodial service and data security system
- It was also reported that the CEO of Binance was among those who consulted on the possible registration
It would seem that only recently we covered a Foresight News report on how much it costs to get a license in Hong Kong. And now this topic has been continued. It turns out that the stringent requirements of the regulator, as well as the huge costs are forcing service providers to go to various tricks.</nbsp;
We remind you that since June 1, Hong Kong has a new licensing regime.. Many counterparties have already announced plans to obtain a permit. Others, on the other hand, are still looking around. Notably, among the latter is Binance, according to Tencent News. The company’s CEO has visited Hong Kong several times to consult with regulators.
But high demand among service providers is gradually subsiding.. The entry threshold was acceptable only to those counterparties that were already operating in the local market before June 1. They have a full year to adjust to the new rules.
But for “newcomers,” the requirements are too high.. Regulator insists on creating its own custodial service and data security system. The Tencent News interlocutor noted that the development will require new personnel.
But while a suitable IT specialist in Hong Kong would cost $9,000, in mainland China it would cost $1400.. Because of this and a number of other nuances, those companies who want a license choose to hire specialists on a remote basis and consider relocating the technical team to Malaysia.
As for the license, it will cost an average of $30 million, which is slightly higher than the figure in the Foresight report.. And that’s just the “cost of entry,” not including the additional costs associated with keeping the custodial system running.
The overly stringent requirements are also forcing counterparties previously interested in Hong Kong to seek alternative markets.. It is interesting that at the end of June, Binance announced its intention to concentrate on the development of this direction.. This decision may have been made after the organization analyzed the requirements of the local regulator.
This decision may have been made after the organization analyzed the requirements of the local regulator.