HashKey, along with OSL, received a major license upgrade on Aug. 3 clearing their way to offer crypto trading services to retail customers.
Asian cryptocurrency exchange HashKey is set to start offering Bitcoin (BTC) and Ether (ETH) crypto trading services to retail customers in Hong Kong starting on Aug. 28, according to a local media report. Investors will only be allowed to invest up to 30% of their net worth into cryptocurrencies when using the platform.
HashKey became the first crypto exchange in Hong Kong to get regulatory clearance to offer crypto trading services to retail traders after upgrading two major licenses issued by the country’s Securities and Futures Commission (SFC). The first license, known as Type 1, made way for HashKey to start a virtual asset trading platform under Hong Kong’s securities laws. The second license, called Type 7, allows the crypto exchange to provide automated trading services to both institutional and retail users.
Apart from HashKey, another crypto platform called OSL also received a regulatory nod from the SFC to offer BTC and ETH retail trading services. The new license regime has made way for Hong Kong to establish itself as one of the few countries that allow crypto retail trading services under the pureview of law.
Hong Kong started the year 2023 with a focus on building a crypto friendly environment in the country. Hong Kong’ Financial Secretary Paul Chan noted at the start of the year that the local government and regulators are looking forward to building a crypto and fintech ecosystem in 2023.
By March, more than 80 crypto firms had expressed interest in opening their offices in Hong Kong, including several crypto heavy weights. In April, the Hong Kong Monetary Authority (HKMA) called on banks to provide services to cryptocurrency firms. By May of the same year, the HKMA had announced a licensing regime for the crypto platforms with a deadline of June 1. By August, a couple of crypto platforms had been approved to offer crypto trading services to retail and institutional clients.
The role of the regulatory framework that helps to protect investors is quite evident in the case of Hong Kong, where retail traders will have access to only BTC and ETH, which the exchange believes is enough for the retail traders’ need.
HashKey didn’t respond to Cointelegraph’s request for comments before publication time.