Hong Kong-based crypto exchange HashKey is poised to introduce retail trading services for Bitcoin and Ether, beginning August 28. As a result of an upgraded license from the Securities and Futures Commission (SFC) granted on August 3, HashKey can now provide cryptocurrency trading to retail customers.
Under this new regulatory framework, retail investors using the platform can allocate up to 30% of their net worth to cryptocurrencies. HashKey secured two significant licenses from the SFC: the Type 1 license enables them to operate a virtual asset trading platform in accordance with securities laws, while the Type 7 license authorizes automated trading services for both institutional and retail users.
Joining HashKey in this initiative, another platform called OSL also received regulatory approval to offer retail trading services for BTC and ETH. This development positions Hong Kong as one of the select nations permitting cryptocurrency retail trading in compliance with legal regulations.
Hong Kong’s commitment to nurturing a crypto-friendly environment is evident from its actions in 2023. The local government and regulators have shown a keen interest in cultivating a robust crypto and fintech ecosystem. Over 80 crypto firms displayed interest in establishing their presence in Hong Kong by March, with prominent industry players among them. The Hong Kong Monetary Authority (HKMA) urged banks to cater to cryptocurrency businesses in April, and by May, the HKMA unveiled a licensing regime for crypto platforms, with a deadline set for June 1. As of August, a couple of platforms gained approval to offer crypto trading services to both retail and institutional clients.
HashKey’s adherence to a regulatory framework aligns with Hong Kong’s approach to safeguarding investors. With BTC and ETH as the available options, the exchange believes these choices cater adequately to the needs of retail traders. HashKey refrained from commenting when contacted by Cointelegraph.