Hong Kong’s Web3 firms are reportedly investing between 20 million to 200 million Hong Kong dollars ($2.55 million to $25.5 million) for the procurement of Virtual Asset Service Provider (VASP) licenses, as they aim to acquire proficient Web3 talent.

A recent analysis from Foresight News, a local news agency, indicated that the costs associated with gaining VASP licenses have been substantial. Web3 companies, including those with prior cryptocurrency experience, are feeling the financial pinch. Insiders commented:

“Given that traditional finance entities lack the necessary initial structure, the transition from ground zero in terms of products and teams has led to high expenditures associated with VASPs.”

Foresight News analysts highlighted that operations have begun for Hong Kong branches of exchange platforms like OKX, BitgetX, HashKey Pro, OSL, and Gate.io. Notably, OKX has managed to register 8,800 users in Hong Kong, with an aggregate trading volume reaching $150 million in this special administrative region (SAR) of China, as of June 27.

Earlier this month, Hong Kong unveiled fresh VASP licensing norms for crypto exchanges. These stipulate that firms must present accurate company financials and user data to the Hong Kong Securities and Futures Commission for regulatory clearance. Exchanges failing to meet these standards will be compelled to suspend operations in the SAR by mid-next year.

Concurrently, the Hong Kong Virtual Asset Consortium introduced its virtual asset index, featuring leading cryptocurrencies like Bitcoin (priced at $30,523) and Ether (valued at $1,870), alongside a range of altcoins and privacy tokens. The consortium aims to streamline retail crypto trading in the SAR by offering index and ratings services, with backing from prominent players like Huobi, KuCoin, Bitget, and others.