Asian cryptocurrency exchange HashKey is gearing up to offer cryptocurrency trading services to retail customers in Hong Kong starting from August 28, as reported by local media outlets. Investors will only be allowed to invest a maximum of 30% of their net asset value into cryptocurrencies when using this platform. Initially, the exchange will support Bitcoin and Ether trading.
HashKey has become the first cryptocurrency exchange in Hong Kong to receive regulatory licenses from the Securities and Futures Commission (SFC) to provide cryptocurrency trading services to retail traders. The first license, known as Type 1, paved the way for HashKey to launch its virtual asset trading platform in compliance with Hong Kong’s securities laws. The second license, known as Type 7, allows the cryptocurrency exchange to provide automated trading services for both institutional and retail users.
In addition to HashKey, another cryptocurrency platform called OSL has also received regulatory approval from the SFC to offer retail BTC and ETH trading services. This new licensing regime has positioned Hong Kong as one of the few countries allowing legal retail cryptocurrency trading services.
Hong Kong began 2023 with a focus on creating a cryptocurrency-friendly environment domestically. Hong Kong’s Financial Secretary Paul Chan noted at the beginning of the year that the local government and regulatory bodies are aiming to build a cryptocurrency and fintech ecosystem in 2023.