Crypto exchanges OSL and HashKey have, since Monday August 28, begun offering retail crypto services to Hong Kong users. The two crypto exchanges offer retail crypto trading access after securing license uplifts from the regulator.
HashKey confirmed unveiling retail services to Hong Kong users, ending their wait to access digital assets from the local platforms. The crypto exchange indicated that crypto traders within China’s administrative region began accessing the retail trading services starting Monday.
HashKey and OSL Expand Scope to Retail Crypto Services
Before August 28, HashKey restricted operations as outlined in the permit for trading services to institutional and professional investors. It admits the scope changed when the Hong Kong Securities and Futures Commission (SFC) approved its bid for Type 1 and Type 7 licenses on August 3. The license upgrade transformed HashKey into a licensed retail exchange.
Digital asset exchange OSL would also confirm the license uplift from the regulator on the same date as HashKey. The platform indicated that the license uplift permitted the provision of brokerage, custody, and exchange services to retail customers within Hong Kong.
Dave Chapman, the executive director at OSL, indicated that retail offerings became accessible to retail investors since securing the license uplift on August 3.
Meanwhile, the HashKey executive lauds retail crypto trading as a critical milestone for the administrative region’s journey toward becoming a global crypto hub. HashKey revealed it would offer Bitcoin and Ethereum paired with the Hong Kong dollar.
HashKey indicated that it would list additional tokens upon launching the retail users. Also, it assured plans to expand the scope towards supporting deposits and withdrawals in US$ and Hong Kong $.
A spokesperson from HashKey portrayed optimism in the exchange capability to develop Web3 in Hong Kong. The executive indicated that HashKey intends to tap into the support provided by the SFC and government. Besides, the crypto exchange targets onboarding 0.5M to 1M local and foreign users by December 2023.
Government Support for Regulatory Clarity and Web3 Development
The HashKey representative admitted that the exchange targets leveraging the bullish momentum predicted between 2024 and 2025. He added that the company targets riding on the increased demand from retail investors likely to optimize crypto trading. It projects that Hong Kong will experience a user base growth of 10-15 million by 2025.
HashKey chief operative executive Livio Weng highlights the essence of favorable regulatory input by the Hong Kong government. Also, SFC plays a critical oversight role that has catalyzed Web3 ecosystem growth.
Weng considers regulatory compliance gradually transforming Hong Kong into attracting Web3 talents. Besides, regulatory clarity within Hong Kong is set to attract foreign capital, thus accelerating tech and business innovation.
Weng observed that Hong Kong portrays signs of a sustainable environment likely to spark virtuous cycle development within the industry. In particular, the executive observed that sustaining favorable regulatory parameters would ultimately position Hong Kong as the ideal alternative to establish residence for Web3 firms.
HashKey Exchange Prioritize Regulatory Compliance and Crypto Security
Weng revealed that HashKey exchange leverages Hex Engine to run operations from the high-performance trading system that executes 5000 transactions per second. The exchange embraces a proactive approach to comply with the newly introduced guidelines by the Hong Kong authorities. As such, it is devoted to screening users through the know-your-customer (KYC) procedures, transaction monitoring, and anti-money laundering inspections.
Weng indicated that HashKey has a permit to offer custodial services for retail and institutional clients. Besides, it enforces a strict policy stipulating storage of 98% of the cryptos in cold wallets.
Meanwhile, the favorable regulatory ecosystem in Hong Kong is set to attract leading global players such as Binance. The crypto exchange recently participated in public discussions and contributed to policy-making processes.
Editorial credit: Yu Chun Christopher Wong / Shutterstock.com
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