New SFC regulations designate Binance as the sole provider of large deposits at HashKey Exchange, thereby bolstering regulatory compliance.
On December 21, the Hong Kong-based HashKey Exchange disclosed a significant modification to its deposit policy. The exchange, which caters to retail and institutional investors, declared it would exclusively take cryptocurrency deposits from Binance that surpassed 8,000HKD (equivalent to approximately $1,024).Â
This decision is based on the most recent regulatory principles established by the Securities and Futures Commission (SFC) of Hong Kong. The exchange emphasized its dedication to regulatory compliance as the primary motivation for this strategic transition.
Insights Regarding The New Deposit Policy
Greater than 8,000HKD deposits will be accepted exclusively through Binance, the preeminent global cryptocurrency exchange, by the new regulations.
This policy is a direct response to the regulations set forth by the SFC, specifically the Travel Rule, which mandates that more significant transactions be subject to more exhaustive scrutiny and documentation.
HashKey Exchange has clarified that withdrawals from third-party exchanges surpassing this threshold will not be acknowledged. Nevertheless, it is crucial to mention that deposits amounting to less than 8,000HKD will continue to be accepted at 24 designated cryptocurrency exchanges.
HashKey Exchange will accept lesser deposits from well-established platforms such as Coinbase, Kraken, Bitfinex, and Gemini on January 1, 2024.
Users must furnish evidence of the funds’ origin when initiating their first deposit through these third-party exchanges by the rigorous anti-money laundering (AML) and know-your-customer (KYC) exchange policies. Currently, the exchange provides retail deposit support for Bitcoin (BTC) and Ethereum (ETH), both prominent cryptocurrencies.
The Significance and Positioning of HashKey Exchange
Since its inception in November, HashKey Exchange has positioned itself as a secure and compliant trading platform in the Hong Kong cryptocurrency market, undergoing rapid change.
By adhering to the regulatory framework established by the SFC, HashKey Exchange showcases its dedication to ensuring legal compliance and safeguarding the interests of its users.
Furthermore, this action demonstrates the exchange’s proactive stance toward adjusting to regulatory modifications within the ever-evolving realm of digital assets.
This modification ushers in a new era of operations at HashKey Exchange that are more concerned with conformance for investors and users.
Although it enforces specific limitations, especially on larger deposits originating from various third-party exchanges, it guarantees compliance with regulatory requirements and promotes transparency in operations.
