HashKey Set to Launch Bitcoin and Ether Retail Trading Services in Hong Kong on August 28
Asian cryptocurrency exchange HashKey is poised to introduce Bitcoin and Ether trading services for retail customers in Hong Kong, beginning from August 28. As part of this service, investors will have the opportunity to allocate up to 30% of their net worth into cryptocurrencies when using the platform.
Notably, HashKey achieved a significant milestone on August 3 when it secured a substantial license upgrade, paving the way for the provision of crypto trading services to retail clients in collaboration with OSL.
In a stride forward for the Hong Kong crypto ecosystem, HashKey became the inaugural cryptocurrency exchange in the region to obtain regulatory clearance for offering crypto trading services to retail traders. This achievement followed the enhancement of two pivotal licenses bestowed upon HashKey by the Securities and Futures Commission (SFC) of Hong Kong.
The first license, categorized as Type 1, enabled HashKey to establish a virtual asset trading platform under the framework of Hong Kong’s securities laws. The second license, known as Type 7, empowered the crypto exchange to deliver automated trading services to both institutional and retail users.
In tandem with HashKey, fellow crypto platform OSL also gained regulatory approval from the SFC to provide retail trading services for Bitcoin and Ether. This new licensing structure has positioned Hong Kong as one of the select countries that permits crypto retail trading services within the bounds of established regulations.
Hong Kong’s aspirations to foster a crypto-friendly environment gained momentum in 2023. Early in the year, Financial Secretary Paul Chan articulated the government’s and regulators’ enthusiasm for cultivating a crypto and fintech ecosystem. This enthusiasm translated into action, with over 80 crypto firms expressing interest in establishing a presence in Hong Kong by March. Subsequently, in April, the Hong Kong Monetary Authority (HKMA) encouraged banks to extend services to cryptocurrency entities. By May, HKMA introduced a licensing regime for crypto platforms, setting a deadline for compliance by June 1. By August, several crypto platforms had been approved to deliver crypto trading services to both retail and institutional clientele.
The role of a robust regulatory framework in safeguarding investors is unmistakably evident in Hong Kong’s approach. As evidenced by the HashKey initiative, retail traders will be granted access exclusively to Bitcoin and Ether – a selection that the exchange deems sufficient to fulfill the needs of retail traders.