- Asia-based cryptocurrency exchange HashKey will start offering Bitcoin and Ethereum trading services to retail customers in Hong Kong starting from August 28th.
- After updating two major licenses granted by the Securities and Futures Commission (SFC), HashKey became the first cryptocurrency exchange in Hong Kong to obtain permission to offer crypto trading services to retail traders.
- Hong Kong Financial Secretary Paul Chan stated earlier this year that the local government and regulators aimed to create a cryptocurrency and financial technology ecosystem by 2023.
Asia-based cryptocurrency exchange HashKey will launch Bitcoin and Ethereum trading services for retail investors in Hong Kong.
HashKey Takes Action for Bitcoin and Ethereum
Asia-based cryptocurrency exchange HashKey will start offering Bitcoin and Ethereum trading services to retail customers in Hong Kong starting from August 28th. According to a local media report, investors will only be able to use 30% of their net worth to invest in cryptocurrencies while using the platform.
After updating two major licenses granted by the Securities and Futures Commission (SFC), HashKey became the first cryptocurrency exchange in Hong Kong to obtain permission to offer crypto trading services to retail traders. The first license, Type 1, allowed HashKey to launch a virtual asset trading platform in accordance with Hong Kong’s securities laws. The second license, Type 7, granted the cryptocurrency exchange the authority to provide automated trading services to both institutional and retail users.
In addition to HashKey, another cryptocurrency platform called OSL also obtained permission from the SFC to offer BTC and ETH retail trading services. The new licensing regime positioned Hong Kong as one of the few countries that allow cryptocurrency retail trading services within the legal framework.
Hong Kong is Creating a Crypto-Friendly Environment
Hong Kong made a start towards creating a crypto-friendly environment in the country by 2023. Hong Kong Financial Secretary Paul Chan stated earlier this year that the local government and regulators aimed to create a cryptocurrency and financial technology ecosystem by 2023.
In March, it was reported that more than 80 cryptocurrency firms showed interest in opening offices in Hong Kong, including several cryptocurrency giants. In April, the Hong Kong Monetary Authority (HKMA) called on banks to provide services to cryptocurrency companies. In the same year, HKMA announced a licensing regime for cryptocurrency platforms and set a deadline for applications until June 1st. By August, several cryptocurrency platforms have been approved to offer crypto trading services to retail and institutional customers.
The role of the regulatory framework in protecting investors is evident, as retail traders will only have access to BTC and ETH. The exchange believes this is sufficient for the needs of retail traders.
