Hong Kong’s HashKey cryptocurrency exchange is gearing up to introduce Bitcoin and Ether trading services for retail clients from August 28, as reported by local media.
A unique feature of this offering is that investors can allocate a maximum of 30% of their total net worth to cryptocurrencies on the platform.
This milestone achievement was made possible after HashKey successfully upgraded two significant licenses granted by the Securities and Futures Commission (SFC) of Hong Kong, becoming the first crypto exchange in the region to gain regulatory approval for extending crypto trading services to retail investors.
The initial license, classified as Type 1, empowered HashKey to establish a virtual asset trading platform within the boundaries of Hong Kong’s securities regulations.
The second license, referred to as Type 7, bestowed the exchange with the authority to furnish automated trading services to both individual and institutional users.
Following suit, OSL, another crypto platform, also secured the SFC’s green light to introduce retail trading services for Bitcoin and Ether.
This strategic move has positioned Hong Kong as one of the pioneering jurisdictions that officially permit cryptocurrency retail trading in accordance with the law.
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Hong Kong embarked on a journey to cultivate a crypto-friendly atmosphere within its borders in 2023. Financial Secretary Paul Chan expressed the government’s and regulators’ commitment to fostering a flourishing crypto and fintech ecosystem.
In March, over 80 crypto firms expressed their intent to establish a presence in the region.
The Hong Kong Monetary Authority (HKMA) further endorsed this stance by urging banks to facilitate services for cryptocurrency enterprises.
By May, HKMA unveiled a licensing structure for crypto platforms, with a deadline set for June 1.
Subsequently, a few crypto platforms received the nod to extend crypto trading facilities to both retail and institutional clientele by August.
The significance of a robust regulatory framework that safeguards investor interests is particularly evident in Hong Kong’s case.
HashKey’s decision to limit retail traders to Bitcoin and Ether underscores the exchange’s commitment to meeting their needs while ensuring prudential standards are maintained.
Despite attempts to solicit comments, HashKey remained unresponsive to inquiries from Cointelegraph as of the time of publication.
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