Hong Kong retail cryptocurrency traders are experiencing new opportunities as local exchanges are launching retail trading services. This development comes after HashKey Exchange was granted Type 1 and Type 7 licenses by the Hong Kong Securities and Futures Commission (SFC) on August 3, allowing them to serve professional, institutional, and retail investors. In addition, digital asset platform OSL also received a license uplift from the SFC, enabling them to offer their services to retail customers in Hong Kong.
HashKey Exchange initially offers Bitcoin (BTC) and Ether (ETH) trading pairs with the Hong Kong dollar. However, it plans to list further tokens in the future to provide a more diverse range of trading options. Moreover, the exchange now supports both United States dollar and Hong Kong dollar deposits and withdrawals, making it more convenient for users.
HashKey Exchange has a positive outlook on the development of Web3 in the region, stimulated by the support from the government and the SFC. The exchange aims to onboard 500,000 to one million users by the end of 2023, both locally and internationally. It is predicted that the growing accessibility of cryptocurrencies for retail investors will lead to a significant increase in Hong Kong’s crypto user base, potentially reaching 10–15 million within the next two years.
The favorable regulatory oversight provided by the Hong Kong government and the SFC has been identified as a key driver of growth for the Web3 ecosystem. This regulatory environment is expected to attract Web3 talents and capital from around the world, fostering technological and business innovation. The emergence of Hong Kong as a crypto-friendly hub is positioning the region as a potential alternative for Web3 firms to relocate to.
HashKey Exchange operates on the Hex Engine, a high-performance trading system capable of processing 5,000 transactions per second. The exchange has taken measures to comply with Hong Kong’s regulatory guidelines, including user screening, Anti-Money Laundering inspections, and transaction monitoring. Additionally, HashKey is licensed to hold custody of institutional and retail client funds, with 98% of cryptocurrencies under management stored in cold wallets, ensuring maximum security.
Hong Kong’s adoption of a favorable yet regulated cryptocurrency ecosystem has attracted the attention of global players like Binance. These players actively participate in public discussions and policy-making processes in Hong Kong, recognizing the potential of the region as a significant player in the crypto industry.
The launch of retail trading services by HashKey Exchange and the license uplift received by OSL have opened up new opportunities for retail investors in Hong Kong. The growing accessibility of cryptocurrencies, supported by favorable regulatory oversight and technological advancements, is expected to contribute to the rapid expansion of the crypto user base in the region. As Hong Kong solidifies its position as a crypto-friendly hub, it presents exciting possibilities for the growth and development of the Web3 ecosystem.