Hashkey

Hong Kong’s Crypto Framework Near Completion — 11 Platforms Awaiting Approval

October 8, 2024 Bitcoin.com

Hong Kong crypto exchange license applications cost less than expected

June 3, 2024 Coin Telegraph

Trading of Hong Kong Spot Bitcoin and Ethereum ETFs Starts April 30

April 24, 2024 Bitcoin.com

Hashkey exchange to onboard market makers to boost liquidity

December 5, 2023 Coin Telegraph

Coin Telegraph

"To incentivize more users to provide liquidity, we will officially launch the market maker project starting from 2023/12/28," the exchange wrote.

Hashkey, one of the first crypto exchanges to be licensed in Hong Kong, will soon allow individual and enterprise market makers to provide liquidity on the exchange.

According to the Dec. 5 announcement, individuals and entities can apply to be a market maker on Hashkey provided that they trade at least $5 million worth of cryptocurrencies per month on the exchange.

Depending on monthly rankings or trading volume, users and firms will receive between 0.005% and 0.015% of transaction value as commission.

Hong Kong-regulated exchanges have expanded service offerings and partnerships since the first licenses were granted in August. OSL, another Hong Kong licensed exchange, signed a partnership with Interactive Brokers on Nov. 28 to enable Hong Kong clients to purchase Bitcoin (BTC) and Ether (ETH) using Interactive Brokers' investment accounts. 30, the firm onboarded Victory Securities, the first regulated broker in Hong Kong to obtain approval for virtual asset dealings, for crypto trading services on OSL's platform.

Meanwhile, Hashkey has been expanding its altcoin offerings, though they remain available only to accredited investors meeting a $1 million portfolio requirement.

Hashkey HK opens AVAX trading with $1M portfolio requirement

September 27, 2023 Coin Telegraph

Hashkey HK opens AVAX trading with M portfolio requirement

Coin Telegraph

Only professional investors with a portfolio exceeding $1 million can invest in altcoins through regulated exchanges in Hong Kong.

Hong Kong crypto exchange Hashkey, the first to receive a retail crypto license in the Special Administrative Region (SAR), will open Avalanche (AVAX) trading on its platform. However, there is a catch.

According to the September 27 announcement, only professional investors, or individuals possessing an investment portfolio with a value exceeding 8 million Hong Kong dollars ($1 million), as defined by the SAR's Securities & Futures Commission (SFC), can trade AVAX on the Hashkey exchange. Currently, only Bitcoin (BTC), Ether (ETH), and Tether (USDT) are approved by the SFC for retail trading, with the remaining altcoins subject to professional investor restriction.

The SFC has placed significant restrictions on exchanges since regulated retail crypto trading began in Hong Kong in August. Unlike its global counterpart, Hashkey Hong Kong requires users to deposit the equivalent of $1,500 into their exchange accounts as part of the Know Your Customer verification process.

Cointelegraph reported in June that crypto exchanges are spending over $25 million to establish the proper infrastructure needed for a Hong Kong Virtual Asset Provider (VASP) license. Meanwhile, Hashkey Hong Kong has an estimated 24-hour trading volume of just $5.3 million across three cryptos, a fraction of its global peers.

Ironically, the introduction of a regulated crypto regime did not appear to halt the activities of bad actors. During the Token2049 conference in September, the biggest financial fraud in Hong Kong's history unraveled with the collapse of the JPEX crypto exchange. Police have accused JPEX of embezzling more than $178 million of investors' money, with the exchange being unregistered with the SFC at the time of the incident. Since the fallout, the SFC has begun publishing a warning list of crypto exchanges deemed non-compliant in the SAR.

Attention #Crypto Enthusiasts! $AVAX @avax will be available on HashKey Exchange.
Deposit and withdrawal are live, and AVAX/USD trading pairs begins on September 28.
Professional investors, this one is for you ! #CryptoAlert
Read more: https://t.co/sKNFHDF6oe pic.twitter.com/ZQpzSmAi39
— HashKey Exchange (@HashKeyExchange) September 27, 2023

Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis

Hong Kong’s first licensed retail crypto exchange HashKey eyes 2024 bull run

August 30, 2023 Coin Telegraph

Coin Telegraph

HashKey became the first licensed retail cryptocurrency exchange to launch in Hong Kong and anticipates major growth of the Web3 industry in the special administrative region.

Hong Kong retail cryptocurrency traders now have access to a locally based cryptocurrency exchange, with HashKey Exchange launching retail trading services to users in China’s special administrative region on Aug. 28.

The company was previously permitted to serve professional and institutional investors before being granted Type 1 and Type 7 licenses by the Hong Kong Securities and Futures Commission (SFC) on Aug. 3. This paved the way to becoming the first licensed retail exchange in Hong Kong.

*Figures from Hong Kong’s treasury, banking, accounting and Web3 ecosystem marked the launch of retail trading at the Maritime Museum Central. Source: HashKey Exchange*

As Cointelegraph previously reported , the exchange now offers Bitcoin (BTC) and Ether (ETH) trading pairs with the Hong Kong dollar, and it plans to list further tokens following its launch for retail users. HashKey also announced support for both United States dollar and Hong Kong dollar deposits and withdrawals.

A spokesperson from the company told Cointelegraph that HashKey holds an optimistic outlook for the development of Web3 in the region, which has been driven by 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 abroad.

HashKey’s representative added that the exchange anticipates the advent of a new cryptocurrency bull market between 2024 and 2025. With retail investors now allowed to obtain and trade cryptocurrencies, the company predicts Hong Kong’s crypto user base will increase to 10–15 million over the next two years.

A statement from HashKey’s chief operating officer, Livio Weng, highlighted the importance of favorable regulatory oversight from the Hong Kong government and the SFC as a key driver of growth for the Web3 ecosystem:

“The emergence of regulatory compliance in Hong Kong will attract Web3 talents and capital from around the world, thereby accelerating technological and business innovation.”

Weng added that the environment emerging in Hong Kong could spark a “virtuous cycle of development with the industry,” with favorable regulatory parameters positioning the region as a potential alternative for Web3 firms to relocate to.

HashKey’s exchange operates on the Hex Engine, which it touts as a high-performance trading system capable of processing 5,000 transactions per second.

The exchange has also adopted a number of regulatory requirements in line with Hong Kong’s guidelines, including detailed user screening, Anti-Money Laundering inspections and transaction monitoring across its operations.

HashKey is also licensed to hold custody of institutional and retail client funds, and its policy stipulates that 98% of cryptocurrencies under management are stored in cold wallets.

Hong Kong’s adoption of a favorable but regulated cryptocurrency ecosystem is also attracting the attention of global players like Binance, which also took part in public discussions and policy-making processes, as previously reported by Cointelegraph.

Digital asset platform OSL also announced its SFC license uplift on Aug. 3, which enabled the brokerage, exchange, and custody provider to offer its services to retail customers in Hong Kong. OSL executive director Dave Chapman told Cointelegraph that its Hong Kong offering has been available for retail investors since the firm received the retail license uplift.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

HashKey launches wealth management service, citing ‘significant’ demand

April 14, 2023 Coin Telegraph

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Hong Kong’s HashKey recently received a number of licenses from local regulators, allowing it to expand its range of products and services.

Hong Kong-based digital asset firm HashKey Group has launched a new wealth management platform geared toward professional and institutional investors.

In an April 14 announcement, HashKey cited “significant demand from investors to access virtual assets” as the reason for its move into the wealth management space.

Deng Chao, the CEO of the group’s venture capital arm, HashKey Capital, said the service allows it to offer solutions to help tap into the “growing opportunities of virtual assets.”

HashKey pointed to a 2022 study from consultancy firm Boston Consulting Group, which found 0.3% of individual wealth is invested in crypto compared to the 25% invested in equities.

*A screenshot from BSG’s 2022 report highlighting the growth potential for crypto. Source:* *BSG*

It claims this signals there is “potential robust demand for virtual assets in the future,” a sentiment that was shared by BSG when it initially published the report.

On Sept. 13, HashKey announced that it had been granted a “Type 9 asset management license” by Hong Kong’s Securities and Futures Commission, allowing it to manage portfolios that only contain virtual assets and likely paved the way for its latest offering.

In the latest announcement, HashKey also noted that “recent challenges in the crypto market have highlighted the need for deep and reliable liquidity.”

In response, HashKey said it would be expanding its over-the-counter trading service by expanding the number of tokens in its spot market and increasing its liquidity coverage to 24/7.

On Jan. 17 HashKey closed a $500 million investment round for a fund that it plans to use to help push for mass adoption of blockchain and crypto technologies.

We're delighted to share that @HashKey_Capital successfully closed its Fund III, having raised a total of $500 million.

The Fund will be deployed to advance global #crypto and #blockchain initiatives, focused on building and scaling the #Web3 ecosystem.https://t.co/qjq3ur0N7F
— HashKey Group (@HashKeyGroup) January 17, 2023