Hong Kong-based HashKey exchange is gearing up to introduce retail trading services for Bitcoin and Ether, starting from August 28. Following significant license upgrades granted on August 3 by the Securities and Futures Commission (SFC), HashKey can now provide cryptocurrency trading to retail customers.
Under the new regulatory framework, investors will be permitted to allocate up to 30% of their net worth to cryptocurrencies through the platform. HashKey, the first crypto exchange in Hong Kong to receive such clearance, obtained two key licenses: Type 1 for a virtual asset trading platform under the country’s securities laws, and Type 7 for automated trading services catering to both institutional and retail users.
— HashKey Group (@HashKeyGroup) August 22, 2023
OSL, another crypto platform, also gained SFC approval for offering BTC and ETH retail trading services. This development cements Hong Kong’s position as one of the select countries allowing regulated crypto retail trading services.
Hong Kong’s commitment to fostering a crypto-friendly environment was highlighted by over 80 crypto firms expressing interest in establishing offices in the country by March. The Hong Kong Monetary Authority (HKMA) encouraged banks to serve cryptocurrency businesses in April. By May, the HKMA introduced a licensing regime for crypto platforms, with several gaining approval for retail and institutional trading services by August.
HashKey’s adherence to robust regulations reflects the importance of investor protection. With a focus on BTC and ETH, the exchange ensures that retail traders have access to well-established cryptocurrencies. HashKey remained unavailable for comments to Cointelegraph before publication.