HashKey, as the pioneer licensed retail cryptocurrency exchange in Hong Kong, has initiated operations, marking a significant milestone in the region’s crypto landscape. The company envisions substantial expansion within the Web3 sector in this unique administrative jurisdiction.
On August 28, HashKey Exchange opened its doors to retail cryptocurrency traders in Hong Kong, marking a significant development for the local cryptocurrency trading scene.
Previously, HashKey Exchange was exclusively catering to professional and institutional investors. However, following the issuance of Type 1 and Type 7 licenses by the Hong Kong Securities and Futures Commission (SFC) on August 3, the exchange received the green light to operate as a licensed retail exchange in Hong Kong.
Another notable player in this space, the digital asset platform OSL, also received regulatory approval from the SFC on August 3. This pivotal moment allowed OSL, a provider of brokerage, exchange, and custody services, to extend its offerings to retail customers in Hong Kong. Dave Chapman, Executive Director at OSL, confirmed that the company’s Hong Kong services have been accessible to retail investors since the receipt of the retail license uplift.
As previously covered by Cointelegraph, HashKey initially introduced trading pairs for Bitcoin (BTC), currently priced at $25,913, and Ether (ETH), valued at $1,634, against the Hong Kong dollar. Additionally, the exchange has plans to expand its offerings to include more tokens as it caters to retail users. HashKey has also announced its readiness to facilitate both United States dollar and Hong Kong dollar deposits and withdrawals.
According to a spokesperson representing the company, HashKey holds an optimistic view regarding the growth of Web3 in the region, largely driven by government and SFC support. The exchange has set ambitious goals and aims to onboard between 500,000 to one million users, both locally and internationally, by the conclusion of 2023.
The representative from HashKey additionally mentioned that the exchange foresees the emergence of a fresh cryptocurrency bull market occurring between 2024 and 2025. As retail investors gain access to cryptocurrency acquisition and trading, the company anticipates that Hong Kong’s crypto user base will expand significantly, potentially reaching 10–15 million within the next couple of years.
HashKey’s Chief Operating Officer, Livio Weng, emphasized the pivotal role of supportive regulatory oversight from the Hong Kong government and the SFC in driving growth within the Web3 ecosystem in a statement.
“The introduction of regulatory compliance in Hong Kong is poised to draw Web3 expertise and investments from across the globe, thereby expediting technological advancements and entrepreneurial endeavors.”
Weng further emphasized that the evolving landscape in Hong Kong has the potential to ignite a “positive cycle of growth within the industry.” With accommodating regulatory frameworks in place, the region is becoming an attractive destination for Web3 companies considering relocation.
HashKey’s exchange operates on the Hex Engine, a high-performance trading system renowned for its ability to handle 5,000 transactions per second.
The exchange has taken steps to align with Hong Kong’s regulatory guidelines, implementing comprehensive user screening, conducting Anti-Money Laundering audits, and monitoring transactions across its operations.
HashKey is also licensed to safeguard both institutional and retail client funds, with a policy mandating that 98% of cryptocurrencies under management be stored in cold wallets.
Hong Kong’s adoption of a balanced and regulated cryptocurrency ecosystem has piqued the interest of global players like Binance, which, as previously reported by Cointelegraph, actively engaged in public discussions and policy-making processes in the region.
This news is only analytical and informative and is not a recommendation for investment in any way.
