Introduction
Hong Kong retail cryptocurrency traders can now enjoy the convenience of a locally based cryptocurrency exchange. HashKey, the country's first licensed retail exchange, launched its trading services on August 28. Previously, the exchange was only permitted to serve professional and institutional investors. However, after obtaining Type 1 and Type 7 licenses from the Hong Kong Securities and Futures Commission (SFC), it is now able to cater to retail users as well.
Expanded Services
HashKey currently offers Bitcoin (BTC) and Ethereum (ETH) trading pairs with the Hong Kong Dollar (BTC/USD and ETH/USD). The exchange also plans to list additional tokens following its launch for retail users. In addition, HashKey now supports both United States and Hong Kong Dollars for deposits and withdrawals.
Optimistic Outlook
According to a spokesperson from HashKey, the company holds an optimistic outlook for the development of Web3 in the region. The government and SFC's support has driven the growth of this sector, and HashKey aims to onboard 500,000 to 1 million users by the end of 2023, both locally and abroad. The exchange even predicts a new cryptocurrency bull market between 2024 and 2025, which is expected to significantly increase Hong Kong's crypto user base to 10 to 15 million people over the next two years.
Importance of Regulation
HashKey Group COO Livio Weng emphasized the importance of favorable regulatory oversight from the Hong Kong government and SFC. He believes that the emergence of regulatory compliance will attract talents and capital from around the world, thereby accelerating technological and business innovation. Weng also mentioned that Hong Kong's favorable regulatory parameters could position the region as a potential alternative for Web3 firms to relocate to.
High-Performance Trading System
HashKey's exchange operates on the HEX Engine, which boasts a high-performance trading system capable of processing 5,000 transactions per second. The exchange has also adopted various regulatory requirements, such as user screening, AML inspections, and transaction monitoring, to align with Hong Kong's guidelines.
Safeguarding User Funds
As a licensed custodian, HashKey is authorized to hold custody of institutional and retail clients' funds. The company ensures that 98% of the cryptocurrencies under its management are stored in cold wallets, prioritizing the security of users' assets.
Attracting Global Players
Hong Kong's adoption of a favorable yet regulated cryptocurrency ecosystem is catching the attention of global players like Binance. These players are participating in public discussions and policy-making processes, as they see the potential for growth in the region.
OSL, another cryptocurrency firm, also announced an uplift of its license from the SFC on August 3. This enables the company to offer its brokerage, exchange, and custody services to retail customers in Hong Kong.
Overall, Hong Kong's regulatory environment and HashKey's entrance into the retail market position the region as an attractive destination for cryptocurrency traders and firms.
