Hong Kong retail cryptocurrency traders can now access local cryptocurrency exchanges after HashKey made retail trading services available to users in the Chinese Special Administrative Region on December 11, 2019. August 28.
The firm was previously licensed to provide services to professional and institutional investors and received Type 1 and Type 7 licenses from Hong Kong’s Securities and Futures Commission (SFC) on August 3. This paved the way for becoming the first licensed retail exchange in Hong Kong.
As previously reported by Cointelegraph, the exchange now offers Bitcoin (BTC) and Ethereum (ETH) trading pairs against the Hong Kong dollar (BTC/USD and ETH/USD), with plans to list more after the rollout to retail users Token. HashKey also announced support for USD and HKD deposits and withdrawals.
A spokesperson for the company told Cointelegraph that HashKey is optimistic about Web3’s prospects in the region, bolstered by government and SEC support. The exchange aims to attract 500,000 to 1 million domestic and foreign users by the end of 2023.
Related: Hong Kong’s Regulatory Leadership Makes It a Major Crypto Hub
A HashKey representative added that the exchange expects a new cryptocurrency bull market between 2024 and 2025. With retail investors now providing access to and trading cryptocurrencies, the firm expects Hong Kong’s cryptocurrency user base to increase to 100,000 to 15 million people in the future. next two years.
A statement by HashKey Group COO Livio Weng highlighted the importance of favorable regulatory oversight from the Hong Kong government and SFC as a key driver of the growth of the Web3 ecosystem:
“The emergence of regulatory compliance in Hong Kong will attract Web3 talent and capital from around the world, thereby accelerating technological and business innovation.”
Weng added that the environment being created in Hong Kong could trigger a “virtuous circle of industry development,” with favorable regulatory parameters making the region a potential choice for Web3 companies to relocate to.
HashKey’s exchange runs on the HEX engine, which is said to be a high-performance trading system capable of handling 5,000 transactions per second.
The exchange has also adopted several regulatory requirements based on Hong Kong guidelines, including detailed user screening, anti-money laundering checks and transaction monitoring across the business.
HashKey is also licensed for custody of institutional and retail client funds, noting that its policy mandates that 98% of cryptocurrencies under management are stored in cold wallets.
Hong Kong’s adoption of a favorable but regulated cryptocurrency ecosystem has also attracted the attention of global players such as Binance, which has also participated in the public discussion and policymaking process previously reported by Cointelegraph.
There is also OSL Announce On Aug. 3, the SFC granted it a license, enabling the brokerage, exchange and custody provider to offer services to retail clients in Hong Kong. Cointelegraph has reached out to the company to determine if it has attracted retail users since the announcement.
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