HashKey received a license under Hong Kong’s new cryptocurrency regulations, marking a significant step towards legitimizing the retail trading of digital assets in the city.
This development is part of the city’s broader strategy to position itself as a global epicenter for the digital asset sector.
The new license allows the exchange to broaden its operations from catering solely to professional investors to now include retail users, the company stated.
The Securities and Futures Commission has yet to officially confirm this development.
In a bid to enhance its services, HashKey has formed a partnership with Standard Chartered Plc. to facilitate fiat currency deposit and withdrawal services.
The company also unveiled its new virtual asset over-the-counter trading service.
Previously, HashKey and OSL were the only two cryptocurrency exchanges that held permits under Hong Kong’s voluntary licensing program.
Overall, HashKey ’s focus on regulatory compliance is a reflection of our dedication to our clients’ safety and security. We are committed to continuous growth as we strive to become a globally recognized, fully compliant digital asset ecosystem.
“Hash Blockchain Limited, which operates the HashKey exchange, is a leading Virtual Asset Trading Platform Operator based in Hong Kong,” said HashKey.
Under the new Hong Kong regulations, cryptocurrency exchanges can offer trading services to both individuals and institutions, provided they obtain and adhere to licenses designed to mitigate the risky practices exposed by the 2022 crash and the subsequent collapse of the FTX (CRYPTO: FTT) platform.
The new rules stipulate that retail investors can only trade in larger cryptocurrencies such as Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH), which are listed in at least two recognized, investable indexes.
Furthermore, the exchanges are required to conduct risk assessments, provide insurance cover, and ensure asset custody, which could potentially increase their operating costs.
“The Group, which operates in a number of industries including venture capital, asset management, and trading, was reportedly in early conversations to raise between $100 million and $200 million at a valuation surpassing $1 billion,” said HashKey.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich