Former President of the Hong Kong Computer Society: High costs lead to the withdrawal of license applications by international virtual asset service platforms

ChainCatcher news, the transitional period for virtual asset service provider (VASP) licensing in Hong Kong will end at the end of this month. The Securities and Futures Commission will decide whether existing service providers can continue operations after June. Recently, several platforms have withdrawn their license applications in Hong Kong. The former president of the Hong Kong Computer Society, Xu Jiansheng, believes that the cost of operating a trading platform in Hong Kong is relatively high, such as licensing fees and hiring responsible personnel. The trading volume of existing platforms in Hong Kong has not significantly increased, liquidity is lower than that of overseas platforms, and they have failed to attract overseas customers. Additionally, the market may not be able to accommodate numerous license applicants, and large international platforms with mature overseas businesses may withdraw their applications due to profitability issues in the local market.