In a significant development for cryptocurrency enthusiasts in Hong Kong, HashKey Exchange is set to launch retail trading services on August 28, making it one of the pioneering platforms to cater to local retail traders.
Previously, HashKey Exchange was primarily focused on serving professional and institutional investors. However, their fortunes changed on August 3 when they secured Type 1 and Type 7 licenses from the Hong Kong Securities and Futures Commission (SFC). These licenses opened the doors for HashKey to become a fully licensed retail cryptocurrency exchange in Hong Kong.
Joining HashKey in this retail crypto endeavor is OSL, a digital asset platform. Like HashKey, OSL also received a license uplift from the SFC on August 3, granting them the ability to provide brokerage, exchange, and custody services to retail customers in Hong Kong. According to Dave Chapman, Executive Director at OSL, their retail offering has been available since the moment they secured the retail license uplift.
HashKey’s initial offerings for retail traders include Bitcoin and Ether trading pairs with the Hong Kong dollar. They have plans to expand their token offerings after the retail launch. Additionally, HashKey will support both US dollar and Hong Kong dollar deposits and withdrawals, providing flexibility for traders.
A spokesperson from HashKey expressed optimism about the growth of Web3 technology in the region, largely due to government and SFC support. They aim to onboard between 500,000 to one million users by the end of 2023, both locally and internationally. HashKey predicts the onset of a new cryptocurrency bull market between 2024 and 2025, with the opening of crypto trading to retail investors. They anticipate Hong Kong’s crypto user base could swell to 10–15 million within the next two years.
Livio Weng, Chief Operating Officer at HashKey, emphasized the crucial role of favorable regulatory oversight from the Hong Kong government and the SFC in driving the growth of the Web3 ecosystem. He believes this could lead to a virtuous cycle of development, attracting talent and capital from around the world and positioning Hong Kong as an alternative hub for Web3 companies.
HashKey Exchange operates on the Hex Engine, a high-performance trading system capable of processing 5,000 transactions per second. The exchange is fully compliant with Hong Kong’s regulatory guidelines, conducting detailed user screenings, Anti-Money Laundering checks, and transaction monitoring.
Moreover, HashKey is licensed to safeguard both institutional and retail client funds, with a policy that mandates 98% of cryptocurrencies under their management to be stored in secure cold wallets. The favorable yet regulated cryptocurrency environment in Hong Kong is not only appealing to local players but also attracting attention from global giants like Binance, which has actively engaged in public discussions and policy-making processes in the region.