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- 1 Hashkey has secured all necessary permits and licensing in the region for a crypto exchange to function.
- 2 HashKey is permitted to run a virtual asset trading system under Hong Kong securities legislation thanks to the Type 1 license.
Hong Kong is on the path to becoming a global cryptocurrency leader as it constantly improves the rules for cryptocurrencies and makes the region crypto-friendly. Since changes were made in the set of rules in Hong Kong, numerous digital asset service providers rushed to register.
One of the leading digital asset firms, Hashkey, has secured all crucial permits and license in the region that are necessary for a crypto exchange to function. Now, the provider looks forward to serving local retail and professional investors in the region.
The Hong Kong Securities and Futures Commission’s (SFC) renewal of two essential licenses allowed HashKey to reach a new regulatory milestone. Following the SFC’s approval of a new legal framework for cryptocurrencies, it is claimed that the OTC platform complies with regional securities regulations.
HashKey is permitted to run a virtual asset trading system under Hong Kong securities legislation thanks to the Type 1 license. According to the release notes, the second, type 7, enables the business to offer automated trading services to institutional and retail consumers formally.
HashKey has officially started its over-the-counter (OTC) cryptocurrency trading service, HashKey Brokerage, in addition to becoming one of the first licensed exchanges to do so in Hong Kong.
What is the Crypto-Friendly Regulation of Hong- Kong?
Earlier on June 3, TheCoinRepublic reported that approximately 80 companies from China and abroad had expressed their interest in setting up their web3 businesses in the city.
Huobi and OKX are amongst the largest crypto exchanges in the world, and they have also applied for licenses and are ready to operate in the city. The companies registering will have time to complete their KYC(Know Your Customer).
Thanks to the new regulations, individual investors and crypto businesses will function as part of the system.
The Hong Kong legislature’s step of inviting virtual currency exchanges has attracted many firms. Hong Kong has also hinted at stock listing opportunities.
Western countries are approaching stricter rules for crypto regulation. In contrast, Paul Chan, HK’s Financial Secretary, says they will provide a crypto-friendly ecosystem with laws formulated to benefit the industry.
In February, news of the Chinese government acknowledging the permission for crypto initiatives taken by Hong Kong. This shows the importance of crypto work done there, which the Chinese government noticed and accepted.
Recently, regulators implemented stricter rules on digital assets in Europe. This includes declaring some digital assets as security, highlighting the risk factor of virtual currency in ads, etc. This might be why several crypto exchanges are choosing to expand their base in the rising market of Hong Kong.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
