HashKey Exchange has announced winning the first license to offer retail trading services following the Type 1 and Type 7 license upgrade under Hong Kong’s new crypto regime. Prior to HashKey’s process for obtaining the license upgrade, the exchange was already a Type 1 and Type 7 license holder.
HashKey is a Hong Kong Securities and Futures Commission (SFC) licensed virtual asset exchange. According to a report, HashKey and OSL are currently the only compliant exchanges.
Following HashKey’s official announcement, BC Technology Group notified in a statement that its OSL Digital Securities Limited has been approved by the Hong Kong Securities and Futures Commission. This approval would allow them to upgrade its existing license, and provide digital asset trading services to retail investors. The platform will however launch BTC and ETH first.
This new development would allow HashKey Exchange and OSL to take its business to a new reach that serves not only professional investors but retail users as well. Thus, HashKey Exchange has revamped its brand to now cater to both professional investors and retail users.
BC Technology Group in the statement said the development “is a significant first mover advantage, and a direct result of the Group’s strategy of putting regulation and compliance first. The team added that “it demonstrates how regulation is the foundation of future growth and mainstream acceptance in the digital asset space.”
Livio Weng, COO of HashKey Group expressing excitement for the milestone said: “With the establishment of licensed trading platforms and the further clarity of regulatory frameworks in Hong Kong, the industry as a whole will witness increased transparency, leading to a significant boost in investor confidence.”
HashKey Exchange stated that its firm is designed to follow regulatory requirements for native compliance, as well as undergo regular audits and compliance inspections conducted by the Big 4 auditing firms.
According to HashKey Exchange, “user funds management on the platform is such that they are kept in segregated accounts, separated from platform operations, with 98% in cold storage and 2% in hot wallets.”
In addition to supporting fiat currency deposits and withdrawals, HashKey Exchange has partnered with Standard Chartered and plans to collaborate with more top-tier banks for fiat funding and withdrawal services for users, the exchange said.
Moreso, the HashKey exchange has opened a compliant off-platform trading (OPT) service in the Asia-Pacific region. The HashKey Brokerage is the first compliant OPT service in Hong Kong after the implementation of the new virtual asset exchange regulatory framework started by the Securities and Futures Commission in June.
Hong Kong’s new rules would enable crypto exchanges to offer trading to individuals and institutions when they comply.
Recently, HashKey Exchange onboarded over ten senior professionals with advanced experience in exchange operations to collaborate with top financial experts in Hong Kong to form the core team of HashKey Exchange.
HashKey Exchange, commemorating the milestone, opened a pre-registration form where registered users will be rewarded with HashKey EcoPoints (HSK).
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