HashKey Pro, an Asian cryptocurrency exchange, has applied for a license update to the Securities and Futures Commission (SFC) of Hong Kong.
Regional media sites report that HashKey Pro, a subsidiary of the HashKey Group, a financial services provider for digital assets, is fine with getting its application granted. In the upcoming weeks, it aims to start offering services for virtual assets to small-scale cryptocurrency investors.
Currently, the cryptocurrency exchange only accepts a select few digital currencies, such as bitcoin (BTC), ether (ETH), tether (USDT), and USD Coin (USDC).
The exchange can offer users a wider range of digital assets with the license. $200 million to be raised by HashKey Group HashKey Pro sees a chance to become a significant player in the cryptocurrency market as Hong Kong moves closer to regulatory clarity.
HashKey Group, the parent company of the cryptocurrency exchange, announced in May that it intended to raise up to $200 million to help it capitalize on Hong Kong’s comeback as a potential center for the cryptocurrency industry. It represented the company’s faith in both its ability to grow and the changing nature of the digital asset market.
HashKey intends to extend its operations and further develop its banking services by securing a sizeable investment. According to reports, the cash raised will probably be used to expand technological capabilities, build alliances, and strengthen infrastructure in order to give exchange customers a comprehensive and secure trading experience.
The region’s trading platforms for virtual assets are intended to be regulated and overseen by Hong Kong’s retail crypto trading license system, which was unveiled in June.
It mandates that “cold wallets,” which hold digital assets offline, be protected by at least 50%, and that virtual asset platforms purchase insurance.However, the new law mandates that “hot wallets,” online asset storage systems, have full insurance cover from the platforms.
Additionally, cryptocurrencies must meet particular requirements and have prior SFC approval to qualify as major virtual assets for trading on these platforms.
Additionally, licensed platforms are now considered illegal to assist their unlicensed competitors in their marketing endeavors. Platforms that were already functioning in Hong Kong before June 6 have been given a transitional period, but to continue their activities during this time, they must apply for a license within one month.
