Insiders: High compliance costs and low local market attractiveness have led multiple platforms to withdraw their applications for the Hong Kong VASP license

ChainCatcher news, according to Ming Pao, the licensing transition period for virtual asset service providers (VASP) in Hong Kong will end at the end of this month, and the Securities and Futures Commission will decide whether existing service providers can continue operations. Recently, several platforms, including OKX and VAEX, have withdrawn their license applications, citing high compliance costs in Hong Kong and low local market attractiveness.

Industry insiders believe that the liquidity and trading currencies of local platforms are not as good as those overseas, and the stricter regulatory conditions are reasons for the withdrawal of license applications.

Currently, only two platforms have been licensed by the Securities and Futures Commission, while 18 are in the application process. Industry professionals suggest strengthening the tokenization of virtual assets in real-world applications to enhance market acceptance and practical use.