As part of its preparation for retail trading next week, HashKey has implemented stringent Know Your Customer (KYC) protocols to ensure compliance and security.
Hong Kong’s cryptocurrency scene is gearing up for a groundbreaking moment as HashKey, a key player in the industry, is poised to introduce its much-anticipated retail crypto trading services next week. In an interview with the Block on Friday, the company’s Chief Operating Officer, Livio Weng, said the exchange will start trading services for retail customers on August 28.
The move comes a few weeks after HashKey became the first company in the industry to receive an operational license in Hong Kong. The local exchange obtained two different licenses, a Type 1 and Type 7 license, enabling it to operate a virtual asset trading platform and provide automated trading services to a broad range of users, from institutions to retail investors, in line with Hong Kong’s securities laws.
The licenses follow the country’s introduction of a new regulatory framework in May, enabling crypto companies to offer retail services in the country.
HashKey to Offer Bitcoin and Ethereum Trading to Retail Clients
During the interview with the Block, Weng said the company will start trading with Bitcoin (BTC) and Ethereum (ETH) before introducing other cryptocurrencies. He further stated that both HashKey and the financial regulatory authorities in Hong Kong are adopting a cautious approach regarding introducing retail trading services.
The company acknowledged that in a bearish market, there is an elevated risk associated with trading lesser-known altcoins. Hence, HashKey’s initial offering will prioritize crypto tokens with relatively lower risk.
“We thought it’d be better to be more prudent. In a bearish market environment, there could be higher risks trading the so-called altcoins, so we hope to offer tokens that come with relatively lower risks at first,” said Weng.
HashKey in Discussion with Other Crypto Brokerage Companies
Weng also revealed that the Asia-based exchange is currently talking with about five local crypto brokerage companies to diversify its retail channels. The company aims to forge partnerships, allowing retail investors to access its crypto offerings directly through these brokerage platforms.
If accomplished, the move could bring in a substantial influx of users, especially those accustomed to trading Hong Kong stocks on these platforms.
“We’re looking to offer crypto trading services directly to investors on these brokerage platforms. This could potentially bring in tens of millions of users who trade Hong Kong stocks on these platforms,” said Weng.
HashKey Restricts Users Based in Mainland China from Accessing Its Platform
As part of its preparation for retail trading next week, HashKey has implemented stringent Know Your Customer (KYC) protocols to ensure compliance and security.
Users are required to link their bank cards for fiat currency deposits onto the platform, with support for both Hong Kong dollars and US dollars. Moreover, HashKey has opted to uphold a strict stance by prohibiting users from Chinese mainland IP addresses from registering on its platform. The approach aligns with China’s ban on crypto transactions within its borders since September 2021.
Anticipating significant growth, Weng expressed HashKey’s ambitions to grow its registered user base to between 500,000 and 1 million by the end of the year. The company is also projecting a more bullish market in the coming year, aiming to serve an impressive 10 million users by 2025.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.