Individual investors now have more exposure to cryptocurrency trading in Hong Kong thanks to at least one exchange receiving regulatory approval to provide the services.

HashKey, a local provider of digital assets, announced on August 3 that it had successfully attained all necessary licenses to expand its clientele from professional investors to retail customers.

By upgrading two significant licenses issued by Hong Kong's Securities and Futures Commission (SFC), HashKey has reached a new regulatory milestone.

HashKey is able to run a virtual asset trading platform under Hong Kong's securities laws thanks to the Type 1 license.

According to the announcement, the second one, Type 7, officially enables the company to offer automated trading services to institutional and retail users.

HashKey has officially launched its over-the-counter (OTC) trading service for cryptocurrencies, known as HashKey Brokerage, and has also become one of the first licensed exchanges in Hong Kong to offer retail crypto trading.

Following the SFC's adoption of a new regulatory framework for cryptocurrencies, it is claimed that the OTC platform complies with regional securities laws.

Livio Weng, the chief operating officer of HashKey Group, expressed confidence in the development of licensed trading platforms and the increased clarity of Hong Kong's regulatory frameworks. He added:

“The industry as a whole will witness increased transparency, leading to a significant boost in investor confidence.”

On August 3, OSL, a different local cryptocurrency company, also declared that the SFC had upgraded its license, enabling it to start immediately providing Bitcoin and Ether trading to retail investors.

According to OSL co-founder Dave Chapman, "we have been fully regulated for virtual asset trading by the SFC since 2020."

He emphasized that OSL is now able to help retail investors gain access to digital assets thanks to the most recent licensing upgrade.

The announcement follows an argument made by a Hang Seng Bank executive in Hong Kong that cryptocurrency businesses can only open bank accounts after receiving an approval-in-principle license from the SFC.

OSL and Hashkey were reportedly the only exchanges that had approval by the beginning of August.

Sources:

https://cointelegraph.com/news/crypto-hong-kong-debuts-retail-crypto-trading-with-hash-key-exchange

https://group.hashkey.com/en/newsroom/hashkey-type1-7-licence-uplift

https://osl.com/press-release/osl-sfc-license-uplift-retail-investors-trade-bitcoin-and-ethereum/

https://www1.hkej.com/dailynews/headline/article/3514449/%E6%81%92%E7%94%9F%E6%96%99%E8%81%AF%E5%84%B2%E5%B1%80%E3%80%8C%E4%B8%8D%E4%B9%85%E5%BE%8C%E3%80%8D%E6%B8%9B%E6%81%AF