Hong Kong Cryptocurrency Exchange, HashKey, Opens to Retail Traders
On August 28, HashKey unveiled its retail trading services to users in China’s special administrative region, Hong Kong giving retail cryptocurrency traders a locally based cryptocurrency exchange. Whereas the company was earlier allowed to cater to professional and institutional investors, a new development occurred on 3rd August. The Hong Kong Securities and Futures Commission (SFC) granted HashKey Type 1 and Type 7 licenses, thereby setting the stage for it to become Hong Kong’s first licensed retail exchange.
The Launch Event
The launch ceremony took place at the Maritime Museum Central, strongly backed by eminent personnel from Hong Kong’s treasury, banking, accounting, and Web3 ecosystem. The event marks a significant point in Hong Kong’s cryptocurrency and Web3 development.
Trading Options and Support
As was revealed by Cointelegraph, HashKey’s trading services cover Bitcoin (BTC) and Ethereum (ETH), which can be traded with the Hong Kong Dollar – BTC/USD and ETH/USD. However, the exchange platform intends to beef up its list of tokens as its retail user base broadens. It is also important to note that HashKey underpins both United States and Hong Kong Dollars deposits and withdrawals.
Interested Audience and Market Growth Predictions
- Exchange User Goals: In an ambitious outlook on Web3 development in the region – enthusiastic as a result of SFC and Hong Kong government support – a HashKey spokesperson disclosed that the exchange aims to onboard 500,000 to 1 million users both locally and abroad by 2023’s end.
- Predicted Bull Market: The exchange further anticipates a new cryptocurrency bull market between 2024 and 2025. Given that retail investors can now acquire and trade cryptocurrencies, HashKey projects that in the next two years, Hong Kong’s crypto user base might surge to 10 to 15 million individuals.
Testimonials
HashKey Group COO Livio Weng expressed the essentiality of a favorable regulatory watch from Hong Kong’s government and SFC for the expansion of the Web3 ecosystem: “The emergence of regulatory compliance in Hong Kong will attract Web3 talents and capital from around the world, thereby accelerating technological and business innovation.”
Technology and Regulatory Compliance
- HEX Engine: HashKey’s exchange revolves around the HEX Engine, a high-performance trading system that can handle up to 5,000 transactions each second.
- Regulatory Requirements: In an attempt to conform to Hong Kong’s guidelines, the exchange has incorporated various regulatory requirements like thorough user screening, AML inspections and transaction tracking across its activities.
- Security: HashKey is also approved to keep institutional and retail clients’ funds in custody and maintains a policy that mandates that 98% of managed cryptocurrencies are stored in cold wallets.
Other Entrants Attracted to Hong Kong’s Rising Crypto-Ecosystem
Amid Hong Kong’s adoption of a conducive yet regulated cryptocurrency ecosystem, there has been a surge in interest from international players such as Binance. This company previously participated in public discussions and policy-making processes as reported by Cointelegraph. On the other hand, OSL announced an upgrade of its own license from the SFC on August 3, permitting it to also provide services to retail customers in Hong Kong. Cointelegraph has reached out to the firm to confirm if it has been able to onboard retail users since the declaration.