HashKey, the first licensed retail crypto exchange to launch in Hong Kong, anticipates a major bull market for cryptocurrencies between 2024 and 2025 with the growth of the Web3 industry and prepares to meet up with the change.
HashKey launched its retail trading services to users in China’s special administrative region on August 28. This gives Hong Kong’s retail cryptocurrency traders access to a locally-based cryptocurrency exchange.
Before being granted Type 1 and Type 7 licenses by the Hong Kong Securities and Futures Commission (SFC) on August 3, the company was previously authorized to service professional and institutional investors. This paved the way for establishing Hong Kong’s first licensed retail exchange.
The introduction of retail trading at Maritime Museum Central was marked by figures from Hong Kong’s treasury, banking, accounting, and Web3 ecosystems.
As previously reported, the exchange now offers Bitcoin and Ethereum trading pairs against the Hong Kong Dollar (BTC/USD and ETH/USD) and intends to list additional tokens after its launch for retail users. HashKey also announced support for deposits and withdrawals in United States and Hong Kong Dollars.
A company representative stated that HashKey is optimistic about the development of Web3 in the region, which has been driven by government and SFC support. The exchange intends to onboard between 500,000 and 1,000,000 local and international users by the end of 2023.
HashKey’s representative added that the exchange anticipates the emergence of a new bull market for cryptocurrencies between 2024 and 2025. With retail investors now able to acquire and trade cryptocurrencies, the company predicts that the number of crypto users in Hong Kong will increase to 10 and 15 million over the next two years.
HashKey Group COO Livio Weng issued a statement emphasizing the significance of favorable regulatory oversight from the Hong Kong government and SFC as a crucial growth driver 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 cultivated environment in Hong Kong could ignite a “virtuous cycle of growth for the industry,” as the region’s favorable regulatory parameters make it a viable alternative for Web3 companies to relocate.
According to the company, HashKey’s exchange is powered by the HEX Engine, a high-performance trading system that executes 5,000 transactions per second.
Following Hong Kong’s guidelines, the exchange has incorporated several regulatory requirements, including detailed user screening, AML inspections, and transaction monitoring.
HashKey is licensed to retain custody of institutional and retail client funds, and its policy mandates that 98% of managed cryptocurrencies are stored in cold wallets.
As reported, Hong Kong’s adoption of a favorable but regulated cryptocurrency ecosystem is attracting the attention of global actors such as Binance, which also participated in public discussions and policy-making processes.
On August 3, OSL also announced that the SFC had lifted its license, allowing the brokerage, exchange, and custody provider to offer its services to retail consumers in Hong Kong.
