OKX Lennix: The cost of obtaining a Hong Kong VASP license is higher than that of Singapore

ChainCatcher news, recently, Lennix, Managing Director of the Global Institutional Business Division at OKX, was invited by the International Financial Law Review (IFLR) to discuss the competition between Hong Kong and Singapore as Web3 hubs.

Lennix stated that both Hong Kong and Singapore are exploring regulations for the crypto industry, and each has its own characteristics regarding VASP licenses, representing two different licensing systems that cannot be directly compared. However, the regulation of crypto trading platforms by the Hong Kong Securities and Futures Commission is very similar to that of traditional securities firms. The cost of obtaining a Hong Kong VASP license is higher than in Singapore, requiring more preparation and higher compliance costs, which is why the number of platforms applying for a Hong Kong VASP license is lower than that in Singapore.

It is reported that OKX has previously announced the establishment of a Hong Kong entity and is applying for a Hong Kong VASP license under the new regulatory framework, as well as Type 1 and Type 7 licenses under the Securities and Futures Ordinance.