HashKey's Full Crypto Licensing Opens Doors for Retail Trading in Hong Kong
More than two months ago, Hong Kong legalized cryptocurrencies, again offering retail traders access to the digital assets market. Though, none of the companies have obtained all the necessary permits to actually conduct...
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More than two months ago, Hong Kong legalized cryptocurrencies, again offering retail traders access to the digital assets market. Though, none of the companies have obtained all the necessary permits to actually conduct retail operations. This has recently changed due to the local company HashKey, which has obtained all the required licenses. From now on, it can provide its services not only to professional and institutional clients but also to other cryptocurrency enthusiasts.
First Hong Kong Company to Offer Crypto Retail Trading
HashKey has achieved a significant milestone in terms of legal regulations, successfully updating two main licenses that were issued by the Securities and Futures Commission (SFC) in Hong Kong. The first license, known as Type 1, authorizes HashKey to operate a virtual asset trading platform in accordance with Hong Kong's securities regulations. The second license, referred to as Type 7, gives the company official permission to provide automatic trading services to both institutional and retail users.
"We are thrilled to become the first licensed trading platform in Hong Kong dedicated to serving retail users," said Livio Weng, the COO of HashKey Group. "With the establishment of licensed trading platforms and the further clarity of regulatory frameworks in Hong Kong, the industry as a whole will witness increased transparency, leading to a significant boost in investor confidence."
In addition to this achievement, HashKey has become one of the pioneering licensed exchanges offering retail cryptocurrency trading services in Hong Kong. Moreover, the company officially introduced its over-the-counter (OTC) cryptocurrency trading platform called HashKey Brokerage. This OTC platform is fully compliant with local securities regulations, following the SFC's implementation of new regulatory frameworks for cryptocurrencies.
"As an industry leader, we will continue to fulfill our commitments in compliance, safety and security, ensuring our user benefits are fully protected and creating a trading platform tailored to retail users," Weng added.
Hongkong Wants to Become a Crypto Hub
The latest actions of Hong Kong, significantly easing cryptocurrency regulations, fit into a broader trend of the special Chinese administrative region aiming to become a cryptocurrency hub. As reported last month, the central bank of Hong Kong is allegedly pressuring HSBC, Standard Chartered, and Bank of China to accept cryptocurrency companies as clients.
The Hong Kong Monetary Authority (HKMA) has asked lenders why they are not opening bank accounts for firms dealing with cryptocurrencies. And, the number of these firms is steadily growing. Recently, CoinEX, Gate.io, OKX, and Huobi also announced their entry into the local market.
OKX presented a new version of its mobile application targeted at customers in the region. The cryptocurrency exchange announced over 10,000 new user registrations from Hong Kong within just a month of launching the improved application.
🎉 Great news for Hong Kong users 🇭🇰 The enhanced #OKX app allows you to buy, sell and hold 16 major cryptocurrencies - with the city's highest standards for security, technology and risk controls.Learn more👇 https://t.co/ZNvdk9Fir0
— OKX (@okx) May 24, 2023Christian Hui, the Secretary for Financial Services and Treasury in Hong Kong, revealed in March 2023 that over 80 foreign and Chinese cryptocurrency firms had expressed an interest in setting up a branch in Hong Kong and obtaining local licenses since October 2022.
"As of the end of February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related Mainland and foreign companies in establishing their presence in Hong Kong," Hui commented.
This article was written by Damian Chmiel at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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