OSL & HashKey Approved by Hong Kong for Retail Crypto Trading

Hong Kong has finally opened the doors of crypto market to individual investors by granting HashKey, the local digital asset firm necessary licenses to offer retail crypto trading services. Along with HashKey, OSL has also been allowed to offer crypto trading to retail investors. With this HashKey and OSL becomes the first licensed Retail Crypto Exchanges in Hong Kong. In this article we will see a little bit of history about HashKey, the ongoing advancements in Hong Kong and How Asia could be the center of the next bull run.

HashKey : The Coinbase of Hong Kong

OSL & HashKey Approved by Hong Kong
Source : HashKey official website

HashKey, a Hong Kong-based crypto company, on Aug. 3 announced that it has successfully upgraded its licenses from the Securities and Futures Commission (SFC) of Hong Kong, the city’s securities regulator. The new licenses allow HashKey to operate a virtual asset trading platform and provide automated trading services to both professional and retail users. The approval comes after the regulator said that they will be granting licenses to companies for retail trading of cryptocurrency after 1st June 2023 .

The regulatory milestone achieved by HashKey was made possible through the upgrading of two major licenses issued by Hong Kong’s Securities and Futures Commission (SFC). The first license, Type 1, grants HashKey the authorization to operate a virtual asset trading platform in compliance with Hong Kong’s securities laws. The second license, Type 7, empowers the firm to provide automated trading services, such as algorithmic trading and market making to both institutional and retail users.

HashKey is one of the first crypto exchanges in Hong Kong to receive these licenses, which are part of the SFC’s new regulatory framework for virtual asset service providers (VASPs) that was introduced in November 2020. The framework requires VASPs to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) rules, as well as to protect the interests of their customers.

In addition to launching its licensed retail crypto trading platform, HashKey has also officially launched its crypto over-the-counter (OTC) trading service, HashKey Brokerage. The OTC platform allows users to buy and sell large amounts of crypto assets with competitive prices and fast settlement.

HashKey Top officials Views

Livio Weng, Chief Operating Officer of HashKey Group, expressed his confidence in the establishment of licensed trading platforms and the clarity brought by regulatory frameworks in Hong Kong. He believes this development will lead to a surge in investor confidence and growth in the cryptocurrency market.

HashKey’s chief operating officer Livio Weng said that the firm is confident in the establishment of licensed trading platforms and the further clarity of regulatory frameworks in Hong Kong. He added:

“The industry as a whole will witness increased transparency, leading to a significant boost in investor confidence.”

HashKey’s Other Achievements 

HashKey has partnered with Standard Chartered Bank(SCB) to allow customers to conduct transactions on its platform without any issues. The agreement, according to the exchange, would give users easy-to-use fiat currency deposit and withdrawal options.

The exchange also revealed a brand revamp to reflect its newly established role as a provider of virtual asset services to both institutional businesses and retail traders. The update’s main goal is to give consumers better experiences and more security(by keeping 98% of customers assets in cold storage).

OSL : Another regulated Crypto Exchange

HashKey is not the only crypto exchange that is now fully ready to offer crypto trading to Hong Kong retail users in legal terms. OSL, another local crypto firm, on Aug. 3 also announced that it received an uplift to its existing license from the SFC, allowing it to offer Bitcoin (BTC) and Ether (ETH) trading to retail investors immediately.

“We have been fully regulated for virtual asset trading by the SFC since 2020,” OSL co-founder Dave Chapman

The news comes soon after an executive at the Hong Kong-based Hang Seng Bank argued that crypto companies can only open bank accounts after obtaining an approval-in-principle license from the SFC. HashKey and OSL were reportedly the only exchanges to have received such approval till now, positioning them as pioneers in the industry.

Author’s Take on the News

In short, for the overall crypto market this is a positive news. Like Japan and Singapore, Hong Kong has introduced significant encouraging rules and regulations for attracting crypto industry. While the US is dragging crypto companies to court, Hong Kong’s initiative to promote crypto will attract many companies to the country.

Although, China has banned crypto on its mainland but the funds from investors from China will start finding it’s ways to Hong Kong as Hong Kong is “technically” a part of China. Their might be some strict regulations on USD stablecoins as they are backed by US debt but once the retail investor gets their hands on crypto they will find ways around that too after all cryptocurrency is all about decentralization 😀

Suggested read :

How a Defi Hack is shaking the altcoin market 

Why Vitalik Buterin, the co-founder of Ethereum is concerned about Worldcoin ?

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