Hong Kong Crypto Platforms Receive Regulatory Nod
Asian cryptocurrency exchange HashKey is set to start offering Bitcoin (BTC) and Ether (ETH) crypto trading services to retail customers in Hong Kong on Aug. 28, according to a local media report. Investors will only be allowed to invest up to 30% of their net worth into cryptocurrencies when using the platform.
HashKey became the first crypto exchange in Hong Kong to get regulatory clearance to offer crypto trading services to retail traders after upgrading two major licenses issued by the country’s Securities and Futures Commission (SFC). The Type 1 license enabled the platform to start a virtual asset trading platform under Hong Kong’s securities laws, while the Type 7 license allows the crypto exchange to provide automated trading services to both institutional and retail users.
Apart from HashKey, another crypto platform called OSL also received a regulatory nod from the SFC to offer BTC and ETH retail trading services. This new license regime has made way for Hong Kong to become one of the few countries that allow crypto retail trading services under the purview of law.
Hong Kong started the year 2023 with a focus on building a crypto friendly environment in the country. Hong Kong’ Financial Secretary Paul Chan noted at the start of the year that the local government and regulators are looking forward to building a web 3.0, AI fintech, and AI for media ecosystem in 2023 to facilitate access to web 3.0, detect fake articles using AI, and create articles with AI.
Regulatory Framework in Hong Kong
By March, a number of crypto firms had expressed interest in establishing their offices in Hong Kong, including some major crypto players. In April, the Hong Kong Monetary Authority (HKMA) urged banks to provide services to cryptocurrency firms. Subsequently, a licensing regime for crypto platforms was announced by the HKMA with a June 1 deadline. By August, a couple of crypto platforms had been approved to offer crypto trading services to both retail and institutional clients.
The significance of the regulatory framework in protecting investors is quite evident in the case of Hong Kong, where retail traders will only have access to BTC and ETH, which the exchange believes is sufficient for retail traders’ needs.
HashKey didn’t respond to Cointelegraph’s request for comments before publication time.
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