Asia-based crypto exchange HashKey confirmed unveiling the crypto trading targeting retail customers in Hong Kong. The firm cites the major license upgrade granted on August 3 by Hong Kong’s Securities and Futures Commission (SFC) as facilitating the firm to offer Bitcoin and Ether trading to retail clients.
A local media publication indicated that the HashKey crypto exchange would unveil the crypto trading services on Monday, August 28. The bulletin stated that the retail customers would acquire and sell Bitcoin and Ether from the platform. It adds that HashKey is capping investment at 30% of the individual’s net worth of crypto assets.
HashKey Unveils Crypto Retail Following License Upgrade
The move by HashKey to announce its scaling services into crypto trading is unsurprising, considering it was the initial crypto exchange to secure regulatory clearance in Hong Kong. It implies that the firm successfully upgraded the licenses issued by SFC, paving the way for it to offer crypto trading to the retail segment.
A review of HashKey’s journey towards crypto retail trading indicates that the firm secured the Type 1 license. The license approves HashKey to establish virtual asset trading guided by the country’s securities laws. The second license involves Type 7, permitting it to offer retail and institutional users automated trading services.
Besides HashKey, SFC granted the regulatory nod sought by crypto firm OSL to provide retailing trading for Bitcoin (BTC) and Ethereum (ETH). The approval of OSL portrays the new license regime positively and is oriented to transform Hong Kong into a global crypto hub. It propels Hong Kong to join the few countries allowing crypto retail trading for compliant firms.
Hong Kong’s efforts to establish a crypto-friendly climate began early this year when Financial Secretary Paul Chain rallied local government and regulators coordination. He challenged the management to prioritize unity of direction towards delivering a crypto-friendly and fintech ecosystem.
Hong Kong Restricts Crypto Retail to Bitcoin and Ethereum
The update issued by the Hong Kong regulator in March indicated that over 80 crypto firms expressed interest in establishing operations in the country. In April, the Hong Kong Monetary Authority (HKMA) challenged the banks to integrate services accommodating the cryptocurrency firms.
The HKMA would in May announce the licensing regime for potential crypto platforms. The regulator issued a June 1 deadline for the applications. The move has seen HashKey and OSL emerge victorious in their quest to provide crypto trading services targeting retail and wholesale clients.
Hong Kong is exercising a cautious regulatory approval process to protect investors against fraudulent activities. Investors’ protection is evident in restricting retail trade access to Bitcoin and Ethereum. HashKey considers the two digital asset tokens sufficient to satisfy the retail traders’ requirements.
Editorial credit: Yu Chun Christopher Wong / Shutterstock.com
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