In recent days, the crypto industry has witnessed a spike in regulatory steps as several countries are leaning toward adopting a regulatory approach to bring the crypto market under tightening scrutiny. The primary reason behind this bold move is to secure investors’ funds and make them aware of any risks related to crypto investment, as the crypto space has recently been a victim of FTX’s demise, wiping over billions of dollars from the global market cap. As Hong Kong SFC previously outlined its regulatory proposal, it now forces firms to obtain a license to offer crypto services in the country. According to a recent press release, HashKey, a blockchain and digital asset company, has been granted approval by Hong Kong’s securities regulator to offer virtual asset trading to its clients.
HashKey Paves Its Way To Hong Kong Amid Tight Regulations
Hong Kong is currently making significant strides in the world of cryptocurrency, as it aims to establish itself as the hub of digital assets in Asia. According to reports, Beijing has been supportive of Hong Kong’s efforts to enter the crypto market, and this has fueled the region’s recent ambitions.
HashKey Group, a leading provider of digital assets financial services in Asia, has announced that it has gained approval from the Securities and Futures Commission of Hong Kong (SFC) to conduct off-platform virtual asset trading in the region. This regulatory approval is a significant milestone for HashKey Group and represents a positive development for the virtual asset industry in Hong Kong.
Hash Blockchain Limited (HBL) has been chosen as the intermediary to facilitate trade between two parties in the cryptocurrency market. HBL will also enable the trading of tokens that are not listed on the exchange’s order book, providing greater flexibility to users.
HashKey Group has pledged to provide its clients with a secure and reliable trading environment while adhering to the transparency, security, and integrity standards set by the Securities and Futures Commission (SFC) in Hong Kong. This commitment demonstrates HashKey Group’s dedication to regulatory compliance and its role in promoting the growth of the virtual asset industry in Hong Kong.
Hong Kong SFC Ensures Regulatory Compliance
The SFC’s approval of HashKey Group is a significant boost for the crypto industry in Hong Kong, as it will allow the company to offer its services to institutional investors, family offices, and high-net-worth individuals. The move also comes at a time when the demand for virtual asset trading platforms in Hong Kong is increasing rapidly.
Moreover, this is a testament to the company’s commitment to regulatory compliance and the highest standards of corporate governance. HashKey Group has already obtained licenses from other regulatory bodies, such as the Hong Kong Monetary Authority and the Bermuda Monetary Authority. Additionally, HashKey Group’s subsidiary, HBL, previously secured approval from the Securities and Futures Commission (SFC) to operate a virtual asset trading platform for professional investors under Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses.
Michel Lee, Executive President of HashKey Group, said, “We are thrilled to receive the approval from the SFC. Our experience with the OTC business has been valuable, and this approval now provides clients with an option to face an entity that is licensed in Hong Kong. As we continue to prepare for the launch of HashKey PRO – our regulatory compliant virtual assets exchange, we are excited to be able to offer more products in the pipeline.”
As the world’s first digital asset group to hold virtual asset licenses, including OTC licenses, from the SFC and the Financial Services Agency of Japan, HashKey Group has established itself as a leader in the digital assets financial services industry in Asia.
In addition, the Monetary Authority of Singapore has granted HashKey Group an exemption from holding a license under the Payment Services Act (PS Act) to provide digital payment token (DPT) services for a specified period.
Colin Zhong, CEO of HBL, said, “A regulated exchange can make a difference in the OTC market in Hong Kong to provide a more secure and transparent environment for investors to trade digital assets, compared to the often opaque and unregulated nature of the OTC business. HashKey PRO is committed to fostering greater trust and confidence among investors. This, in turn, can help attract a broader base of participants to the market and facilitate the mainstream adoption of digital assets.”