Asian cryptocurrency exchange HashKey will begin offering bitcoin and ethereum crypto trading services to retail customers in Hong Kong on Aug. 28, local media reported. Report.Investors are limited to investing a maximum of 30% of their net worth in cryptocurrencies when using the platform
After upgrading two major licenses issued by Hong Kong’s Securities and Futures Commission (SFC), HashKey became the first cryptocurrency exchange in Hong Kong to receive a regulatory license to provide cryptocurrency trading services to retail traders. The first license, called Type 1, paved the way for HashKey to create a virtual asset trading platform under Hong Kong Securities Law. The second license, called Type 7, allows cryptocurrency exchanges to offer automated trading services to institutional and retail users.
In addition to HashKey, another cryptocurrency platform called OSL has also obtained a regulatory license from the Securities Regulatory Commission to provide BTC and ETH retail trading services. The new licensing regime makes Hong Kong one of the few countries that allows crypto retail trading services under purely legal terms.
Hong Kong kicks off 2023 with a focus on creating a crypto-friendly environment in the country. Hong Kong’s financial secretary, Paul Chan, pointed out at the beginning of the year that the local government and regulators look forward to establishing a cryptocurrency and financial technology ecosystem in 2023.
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As of March, more than 80 cryptocurrency firms had expressed interest in opening offices in Hong Kong, including several cryptocurrency heavyweights. In April, the Hong Kong Monetary Authority (HKMA) called on banks to provide services to cryptocurrency companies. In May of the same year, the MAS announced a licensing regime for cryptocurrency platforms with a deadline of June 1. By August, some cryptocurrency platforms were now licensed to offer cryptocurrency trading services to retail and institutional clients.
In the case of Hong Kong, where the role of a regulatory framework that helps protect investors is evident, retail traders can only use BTC and ETH, which the exchange believes is sufficient to meet the needs of retail traders.
HashKey had not responded to Cointelegraph’s request for comment by press time.
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