Hong Kong Expands Retail Crypto Trading With Two License Approvals

Multiple reports reveal that Hong Kong has officially approved two service providers to offer retail crypto trading in the region and boost its residents’ exposure to cryptocurrency. Accordingly, HashKey and OSL have emerged as the two prominent exchanges approved by Hong Kong’s regulator to offer these services.

HashKey Secures Additional License

In an official statement, HashKey, a prominent local digital asset firm, confirmed that it had acquired the necessary licenses for its business expansion. Previously focused solely on institutional investors, the company can now serve retail users, marking a significant milestone in its journey in the crypto space.

Moreover, HashKey obtained the upgraded license after passing two necessary permit tests issued by the Hong Kong Securities and Futures Commission (SFC) for qualified crypto exchanges. The Type 1 license authorizes HashKey to establish and operate a virtual asset trading platform in full compliance with the SFC’s guidelines.

Cypher Mind HQ

By having the second license (Type 7), HashKey can provide automated trading services to a diverse clientele ranging from institutional investors to retail users. In addition, HashKey has also unveiled the HashKey Brokerage, a cutting-edge crypto over-the-counter (OTC) trading service.

This innovative platform demonstrates the firm’s dedication to pushing the boundaries of convenience and compliance.

A Boost In Confidence

Meanwhile, Livio Weng, the company’s Chief Operating Officer, expressed her optimism about the increasing number of licensed trading platforms and the region’s evolution of regulatory frameworks. Weng opined that regulated platforms are essential because they foster trust and transparency among investors while promoting the growth of a robust digital asset ecosystem in the region.

While HashKey’s recent accomplishment is remarkable, it is worth noting that the company is not the only exchange offering crypto-related services to retail users in Hong Kong. On the same day, OSL, another prominent local crypto firm, announced that it had received a license upgrade for its service from the SFC.

Like HashKey, OSL can also start providing Bitcoin (BTC) and Ethereum (ETH) trading services to retail investors in the Chinese colony. OSL’s move reflects the growing interest and demand for virtual asset trading among Hong Kong’s retail investors.

As the region’s crypto industry gains traction, local businesses are positioning themselves strategically to capitalize on this trend by offering relevant services to this broader clientele. Meanwhile, recent remarks by an executive at Hang Seng Bank, a prominent Hong Kong-based financial institution, suggest that Hong Kong regulators closely monitor local crypto industry activities.

The official noted that crypto exchanges seeking to open bank accounts must obtain an approval-in-principle license first from SFC. This requirement highlights the growing scrutiny and regulatory concerns surrounding integrating cryptocurrencies into the traditional banking system.

Cypher Mind HQ

Author: Owen Clark

Owen Clark, a seasoned crypto newsman and broker, deciphers the intricacies of the digital currency realm, empowering investors with his astute analysis and actionable insights.

Leave a Reply

Your email address will not be published. Required fields are marked *