HashKey Exchange has achieved a significant milestone by becoming the first platform in Hong Kong to obtain a license under the city’s new regulatory regime.
The introduction of this licensing system is part of Hong Kong’s efforts to establish itself as a global cryptocurrency hub.
HashKey Exchange Becomes First Licensed Crypto Platform in Hong Kong
HashKey Exchange, an Asia-based cryptocurrency financial services group, has achieved a significant milestone by becoming the first outfit in Hong Kong to obtain a license under the city’s new Virtual Asset Service Provider licensing regime. This regulatory framework permits crypto trading platforms to offer retail services to investors.
Having previously participated in a voluntary licensing program, HashKey has now upgraded its licenses to type 1 and type 7, allowing them to serve retail investors in Hong Kong. The approval of the license comes just two months after the city launched its new licensing regime on June 1, with the goal of positioning itself as a prominent global hub for the crypto industry.
Hong Kong Embraces Crypto Firms Amid China’s Ban
While China continues its strict ban on crypto transactions, Hong Kong has taken a different approach by welcoming cryptocurrency firms and encouraging banks to collaborate with them. In an effort to strengthen its position as a global financial center, Hong Kong released policy statements on cryptocurrencies in October, and in December, the Legislative Council passed an amendment to introduce a full licensing regime for virtual asset service providers.
HashKey and OSL were the first two licensed exchanges in the city under the previous voluntary program, but now, all crypto trading platforms must obtain a license to serve retail investors in Hong Kong.
Despite these efforts, a government study published in June highlighted concerns that Hong Kong is lagging behind its East Asian and Gulf peers in web3 development, signaling the need for further progress in the crypto and blockchain space.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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