Hong Kong now has the first licensed virtual asset service provider for retail investors.
Hong Kong's cryptocurrency landscape is witnessing a remarkable shift as regulatory approvals pave the way for individual investors to participate in crypto trading via the crypto exchange HashKey.
HashKey has been granted the required licensing to expand its services to retail users in the administrative region.
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Hong Kong's Securities and Futures Commission (SFC) has issued two vital licenses that enabled HashKey's new regulatory achievement. The initial license, referred to as Type 1, authorizes HashKey to function as a virtual asset trading platform in compliance with Hong Kong's securities regulations.
The subsequent license, named Type 7, formally allows the company to provide automated trading services to both institutional and retail customers. With the licenses, HashKey has become one of the first companies in Hong Kong to offer retail crypto trading services.
Moreover, after receiving licenses, HashKey launched its crypto over-the-counter (OTC) trading service, HashKey Brokerage.
Regarding this monumental development, HashKey Group's chief operating officer, Livio Weng, asserted confidence in the creation of licensed trading platforms and further improvement of regulatory structures in Hong Kong. Weng stated:
The industry as a whole will witness increased transparency, leading to a significant boost in investor confidence.
This story gains additional significance in light of recent commentary from an executive at Hong Kong's Hang Seng Bank. The executive emphasized that only crypto businesses holding an approval-in-principle license from the SFC can open bank accounts. As of early August, it was disclosed that OSL and HashKey were the only crypto exchanges to secure such approval.
Hong Kong's embrace of retail crypto trading through HashKey's regulatory milestone represents a substantial evolution in the territory's financial landscape. This progression underscores an era of enhanced transparency and confidence in the crypto industry, potentially opening doors for greater accessibility and growth in the region's cryptocurrency market.