- Hong Kong’s decision to embrace crypto trading enables Hashkey Exchange to upgrade its license to offer services to retail Investors.
- Hashkey projects that 500,000 to 1 million users could sign up on the platform by the end of the year.
Amid the recent decision of Hong Kong to take crypto adoption to the next level, Hashkey Exchange, one of the first licensed exchanges in the region has announced that it is permitting retail users to trade Bitcoin (BTC) and Ethereum (ETH) directly with US dollar deposits. In the announcement, it was also explained by HashKey Group COO Livio Weng that retail investors using Hong Kong dollars would be given a week or two to trade these assets.
The two local exchanges – HashKey and OSL, previously licensed by Hong Kong’s Securities Futures Commission (SFC) were permitted to provide virtual trading services to professional investors. Just recently, it was reported that the existing licenses have been upgraded to accommodate retail investors.
In a speech in June, Julia Leung, SFC Chief Executive Officer explained that their objective is not to become a crypto hub. Instead, the country has observed that crypto trading is a very important part of the entire ecosystem. She also admitted that a balanced regulation is important to establishing trust in the crypto world.
Up to now, many jurisdictions have adopted a light-touch approach to regulating crypto asset service providers. the ‘crypto winter’ has strengthened the resolve of global financial regulators.
According to an expert, requirements for exchanges to be upgraded to offer retail-related services include user onboarding, asset custody, cybersecurity, corporate governance, and intensive operational and financial investments. It is also important to note that the offering for retail investors is currently restricted to the two biggest cryptos. This implies that derivatives and stablecoins are currently not permitted.
Hashkey to Onboard Millions of Users
Following the license upgrade, Hashkey is projected to onboard 500,000 to 1 million retail users by the end of the year. By 2025, more than 10 million retail users worldwide could be onboarded. Weng, however, refused to give an estimation of the number of Hong Kong-based retail investors expected to sign up this year.
While admitting that over 1 million people in Hong Kong are crypto investors, he disclosed that most of them are currently unwilling to trade due to the market struggle.
Hashkey has also mentioned that it is working with two banks to assist deposit and withdrawals. According to Weng, ZA Bank, the biggest virtual bank in Hong Kong is one of the collaborators. The other bank was not named. Interestingly, rumors suggest that this could be Standard Chartered Bank. Recently, Hashkey announced its partnership with this bank to ensure that fiat deposits and withdrawal services by users are made convenient.
While Hong Kong is taking steps to provide a thriving environment for this emerging technology to excel, its securities regulator has also warned that some platforms are issuing fake statements about compliance.
This implies that some crypto trading platforms have issued false claims to have submitted applications to SFC to enable them to offer services in the region. SFC further reminded investors that trading with unregulated exchanges could put them at risk of losing their entire investments.
The crypto market has been in a bearish mode for the past several days now with Bitcoin trading at $26,018.51. However, it is expected that the market will rebound as this initiative by Hong Kong could lead to the flow of billions or even trillions of US dollars into the market.
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