Hong Kong’s Securities and Futures Commission (SFC) has taken steps to provide an opportunity for retail investors to invest in crypto trading via safe and regulated crypto trading platforms. As part of these steps, the commission released its guidelines for crypto exchanges.
With this, it aims to create a regulatory framework that enables a safe and secure virtual asset trading environment while protecting the interests of these investors. Furthermore, it will bolster the growth of the industry in the country as more real investors will be attracted to investing in the crypto market and on complaint exchanges.
Commission Approves Haskey
Hong Kong’s Commission has wasted no time hitting the ground running as it has upgraded HashKey’s type 1 & 7 licenses, allowing the crypto exchange to offer retail services under its new guidelines. Crypto exchange HashKey also confirmed this development in a tweet.
🚀 Big news! HashKey Exchange, a licensed virtual asset exchange in Hong Kong, has upgraded its type 1 & 7 licences to offer retail services. Now, all users can enjoy a safe and simple trading experience! https://t.co/DAFfq2ajoe
— HashKey Exchange (@HashKeyExchange) August 3, 2023
This comes after HashKey’s COO Livio Weng teased an upcoming announcement from the crypto exchange. His tweet read: “一张好”牌”，即将到来” which translates loosely as “A good ‘card; is coming.”
HashKey Exchange has now become the first exchange to offer crypto retail trading in Hong Kong as authorities push to make the city a global hub for the crypto industry.
Reacting to the announcement, Livio reaffirmed Haskey’s commitment to being compliant with regulations and believes that the regulatory clarity in Hong Kong will help increase transparency in the industry and boost investors’ confidence.
Livio stated that:
We are thrilled to become the first licenced trading platform in Hong Kong dedicated to serving retail users. With the establishment of licenced trading platforms and the further clarity of regulatory frameworks in Hong Kong, the industry as a whole will witness increased transparency, leading to a significant boost in investor confidence. As an industry leader, we will continue to fulfill our commitments in compliance, safety and security, ensuring our user benefits are fully protected and creating a trading platform tailored to retail users.
Total market cap maintains $1.13 trillion despite market volatility | Source: Crypto Total Market Cap on Tradingview.com
Regulatory Certainty To Attract Exchanges
The authorities in Hong Kong have shown their commitment to creating a thriving crypto industry in the country. The introduction of its guidelines will undoubtedly provide clarity to exchanges on how to conduct their operations in the country (with regulatory uncertainty something has forced exchanges to leave different markets).
As such, one can expect other exchanges to come into the Hong Kong market and gain approval from the Commission to provide crypto trading services to locals.
In early July, Hong Kong announced that it will be providing an educational program for digital asset providers in the country to help them acquire all of the licenses required to fully operate.
This followed a bill that went into effect on June 1 allowing retail traders to participate in high liquidity digital assets such as Bitcoin and Ethereum.
Featured image from South China Morning Post, chart from Tradingview.com