When do Hong Kong crypto exchanges need a license?

As a professional practitioner in the field of cryptocurrency and finance, I often come across questions regarding the regulatory framework surrounding digital asset trading platforms. Specifically, a question that often arises is: "When do Hong Kong crypto exchanges need a license?" This inquiry touches upon the crucial aspect of compliance within the crypto ecosystem, where exchanges operating in Hong Kong must adhere to strict regulatory guidelines. Understanding the licensing requirements is essential for ensuring the legality and stability of these platforms, as well as protecting investors' interests. It is, therefore, crucial to explore the conditions and thresholds that trigger the need for a license for crypto exchanges in Hong Kong.