Hong Kong Approves Two Pioneer Retail Crypto Service Licenses
Hong Kong is steadily opening up its market to crypto-related opportunities following the approval for HashKey Exchange and OSL to offer retail trading services. However, this exciting offer is only available to users who reside within the jurisdiction of China’s unique administrative region.
SFC Approves Retail Crypto Service Offerings
Initially, the two firms were only permitted to serve professional and institutional investors. The companies’ breakthrough came earlier this month after the Hong Kong Securities and Futures Commission (SFC) granted them Type 1 and Type 7 licenses.
This milestone marked their transformation into the region’s authorized retail exchange service providers. The license will allow the brokerage, exchange, and custody provider to expand its services to retail clients in Hong Kong.
Dave Chapman, executive director at OSL, confirmed that the exchange’s Hong Kong services have become available to retail investors after the firm successfully upgraded the retail license. HashKey’s initial offerings include Bitcoin (BTC) and Ethereum (ETH) trading pairs paired with the Hong Kong dollar.
The exchanges’ roadmap goes beyond these offerings, intending to include additional tokens after their retail launch. Accordingly, HashKey has announced its intention to accept deposits and withdrawals in Hong Kong and US dollars.
A HashKey representative revealed that the company is optimistic about the advancement of Web3 technology in the region. This point of view is reinforced by solid backing from the government and the SFC supporting the industry.
Moreover, the crypto firm also disclosed its intention to have 1 million users before the end of the year from its current 500,000 active user base.
Predicting A 2024/2025 Bullish Trend
Furthermore, the HashKey representative stated that the exchange anticipates the emergence of a new crypto bull market between 2024 and 2025. Hence, the company anticipates a significant increase in Hong Kong’s overall crypto user community, expanding to 10-15 million users within the next two years.
HashKey’s top-level executive, Livio Weng, emphasized the necessity of friendly regulatory policies from the government and the regulatory body. According to Weng, the evolving digital asset landscape in Hong Kong could result in a positive cycle of industry growth when regulations are favorable.
These regulations will make the region an appealing relocation option for Web3 startups. The Hex Engine, a high-performance trading system capable of handling 5,000 transactions per second, has already been adopted by HashKey.
Furthermore, the exchange has incorporated several regulatory measures that align with the government’s directives. These compliance measures include thorough user screening, stringent anti-money laundering checks, and vigilant transaction monitoring across all its operations.
HashKey has been fully licensed to offer crypto custody services for institutional and retail client funds. The exchange’s policy requires that 98% of managed cryptocurrencies be stored securely in cold wallets.
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