Industry insiders: Factors such as high compliance costs and low local market attractiveness have led many platforms to withdraw their applications f

On May 26th, it was reported by Ming Pao that the transitional period for the issuance of licenses for virtual asset service providers (VASPs) 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 to operate. Recently, many platforms, including OKX and VAEX, have withdrawn their license applications due to high compliance costs in Hong Kong and low local market attractiveness. Industry insiders believe that the reasons for the withdrawal of license applications are the lower liquidity and trading currency of local platforms compared to overseas ones, as well as stricter regulatory conditions.

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