According to a news article in the local press, Asian cryptocurrency exchange HashKey will start offering crypto trading services to retail customers in Hong Kong from August 28. Investors will be allowed to deposit only up to 30% of their net worth in cryptocurrencies while using the platform.
Spot Bitcoin and Ethereum Can Be Purchased
HashKey became the first cryptocurrency exchange to obtain regulatory permission to offer crypto trading services to retail investors in Hong Kong after upgrading its two major licenses granted by the Securities and Futures Commission (SFC) of the country. The first license, known as Type 1, paved the way for HashKey to launch a virtual asset trading platform under the securities laws of Hong Kong. The second license, known as Type 7, allows the crypto exchange to provide automated trading services to both institutional and retail users.
Another crypto platform called OSL also received regulatory approval from the SFC to offer BTC and ETH retail trading services. The new licensing regime has enabled Hong Kong to become one of the few countries that allow crypto retail trading services within a legal framework.
Hong Kong and Legal Regulations
Hong Kong started the year by focusing on creating a crypto-friendly environment in the country. Hong Kong Financial Secretary Paul Chan stated earlier this year that the local government and regulators are eagerly looking forward to building a crypto and fintech ecosystem in 2023.
By March, more than 80 crypto companies expressed interest in opening offices in Hong Kong. In April, the Hong Kong Monetary Authority (HKMA) urged banks to provide services to crypto companies. In the same year, HKMA announced a licensing regime for crypto platforms with a deadline of June 1. By August, several crypto platforms were approved to offer crypto trading services to retail and institutional customers.
The regulatory framework that helps protect investors plays a significant role in the Hong Kong example, where retail traders can only have access to BTC and ETH. The exchange believes it is sufficient for the needs of spot trading investors.
