HashKey Group to Launch Bitcoin and Ethereum Trading in Hong Kong Following Regulatory Approval

HashKey Group is preparing to launch Bitcoin and Ethereum trading options for its clients in Hong Kong on August 28. The company’s COO, Weng Xiaoqi, revealed in a conversation with local reporters that HashKey will begin offering cryptocurrency trading services to the general public. After applying for a license in July, the company gained regulatory approval earlier this month.

Weng stated that Bitcoin and Ethereum were chosen as initial trading options because they are the most widely circulated and least risky digital assets. He also mentioned that HashKey is contemplating the introduction of margin and derivative products, pending approval from Hong Kong’s Securities and Futures Commission (SFC).

Negotiations are ongoing between HashKey and multiple prominent banks in Hong Kong to incorporate fiat currencies like the Hong Kong dollar and the U.S. dollar into their trading platform. HashKey is also liaising with various brokerage firms in Hong Kong to establish partnerships related to its crypto trading services.

The exchange is planning to implement an investor rating system that will utilize KYC protocols to assess a user’s trading experience. This system aims to restrict the trading activities of newcomers while granting more flexibility to experienced traders. It will also issue risk alerts and cap trading activities for customers who invest more than 30% of their funds in cryptocurrencies.

To maintain compliance, HashKey will only allow transactions through bank cards, as a measure to exclude users from jurisdictions that ban cryptocurrency trading, like mainland China.

HashKey’s latest announcement follows its milestone of becoming the first crypto exchange in Hong Kong to get regulatory permission for offering retail crypto services. It initially secured a Type 1 license under Hong Kong’s securities laws and subsequently acquired a Type 7 license, allowing it to extend automated trading services to both retail and institutional clients.

In a related development, the SFC has also authorized OSL, another Hong Kong-based exchange, to offer retail cryptocurrency trading for Bitcoin and Ethereum.

source