Hong Kong is broadening access to cryptocurrency trading for individual investors, with HashKey, a local digital asset company, receiving regulatory approval to expand its services to retail users. On August 3, HashKey announced that it has secured the required licenses from Hong Kong' s Securities and Futures Commission (SFC) to transition from serving professional investors to catering to retail clients.
HashKey accomplished this milestone by upgrading two key licenses issued by the SFC. The first license, known as Type 1, permits HashKey to operate a virtual asset trading platform in compliance with Hong Kong Securities Law. The second license, Type 7, authorizes the company to provide automated trading services to both institutional and retail users.
Besides being among the first licensed exchanges in Hong Kong to offer retail cryptocurrency trading, HashKey has launched HashKey Brokerage, an over-the-counter (OTC) cryptocurrency service. The OTC platform is designed to adhere to local securities laws once the regulatory framework for cryptocurrencies are finalized by the SEC. Livio Weng, Chief Operating Officer of HashKey Group, expressed confidence in Hong Kong's regulated trading platform and its potential to boost investor confidence through enhanced transparency.
HashKey is not the sole cryptocurrency exchange in Hong Kong poised to legally offer cryptocurrency trading to retail clients. Another local firm, OSL, announced on August 3 that it has upgraded its existing license from the Securities Regulatory Commission, allowing it to offer instant Bitcoin and Ether trading to retail investors. Dave Chapman, Co-founder of OSL, emphasized that their virtual asset trading has been fully regulated by the Securities and Exchange Commission since 2020. He highlighted how the recent licensing enhancement enables OSL to offer greater convenience for investors to acquire digital assets.
This development follows an earlier statement by a Hang Seng Bank executive, indicating that cryptocurrency companies can only establish bank accounts after obtaining an SFC-approved license in principle. As of early August, HashKey and OSL reportedly stood as the only approved cryptocurrency exchanges in Hong Kong Kong to offer retail trading.
