Hashkey, the popular crypto exchange in Hong Kong, is set to begin its retail trading on Monday, August 28. Addressing the local news site, the Hashkey team will support the buying and selling of Bitcoin to retail clients.
The report demonstrated that Hashkey was among the first to secure regulatory approval to offer crypto trading services to retail investors. Reportedly, the crypto exchange has obtained two major licenses issued by the Securities and Futures Commission (SFC).
Hashkey Starts Bitcoin and Ether Retail Trading
The SFC issued Hashkey the first Type 1 license to allow the crypto exchange to offer digital assets services that comply with the Hong Kong regulators. The subsequent license, dubbed Type 7, obtained by Hashkey, allowed the crypto exchange to extend its offering to automated trading products for institutional and retail clients.
Interestingly, the regulators in Hong Kong have been seeking to improve the attractiveness of the crypto industry by implementing the new regulation. Hashkey was among the first crypto firms to obtain a license under a new licensing regime.
A review of the new legislation, investors can invest around 30% of their income in crypto investments. Additionally, the retail investor will only be allowed to invest in Bitcoin and Ether. The regulatory approach implemented by the Hong Kong regulators seeks to safeguard the investor’s interest in the crypto space.
Hashkey Expands its Crypto Offering
In an interview with the chief operating officer of Hashkey, Livio Weng, he restated that the crypto exchange will begin retail trading with the largest crypto asset by market supply, Bitcoin and Ether. The executive believes that Bitcoin and Ether offerings will meet the ever-changing needs of retail clients.
Weng confessed that Hashkey plans to implement a prudent approach to offering retail services. The executive stated that the crypto exchange agreed to be more “prudent” due to uncertainty in the crypto sector.
The official admitted that the crypto exchange will provide digital assets that have low risks. Weng argued that altcoins are more risky compared to Bitcoin and Ether.
The official stated that Hashkey plans to collaborate with five brokerages to broaden its retail offering. The expected partnership will support the establishment of entries that will support Hashkey’s operations.
Weng added that the Hashkey team seeks to offer crypto trading services to retail clients through the said brokerage platforms. The executive mentioned that the collaboration with brokerage firms will help to onboard tens of millions of stock investors to the crypto sector.
In addition, the official affirmed that Hashkey plans to support depositories made through the Hong Kong dollars and the US dollar. However, this development will require the users to connect their bank cards to deposit.
Hashkey Restricts Chinese Users
The executive mentioned that Chinese mainland residents will be restricted from accessing the trading platform. Weng stated that China banned crypto in 2021, and no Chinese user can access the platform.
The executive anticipates the retail clients user base will grow from 500000 to 1 million before December 2023. The COO projected that the crypto bulls will resurface next year. Weng anticipates that the 2024 bulls market will enable Hashkey to serve around 10 million users before 2025.
Correspondingly, the COO projection aligns with the Hong Kong mission of improving the attractiveness of the crypto sector to attract more foreign investment and improve the industry’s performance.
In January, the country’s Financial Secretary, Paul Chan, stated that Hong Kong seeks to create an innovative crypto and fintech ecosystem in 2023. The financial secretary’s sentiments motivated around 80 crypto firms to express interest in expanding to the crypto friendly country.
Afterward, the Hong Kong Monetary Authority (HKMA) implemented new rules urging the local banks to extend their financial services to crypto firms. In May, the HKMA introduced new licensing requirements for crypto firms. In the provision, the HKMA underlined the need to safeguard the investor’s interests.
The new rules have inspired crypto firms to prioritize meeting the compliance requirements to operate as regulated entities in Hong Kong.
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