- Hashkey Exchange has become the first outfit in Hong Kong to obtain a license under the city’s new licensing regime
- The approval comes only two months after Hong Kong launched its Virtual Asset Service Provider licensing regime to become a global crypto industry hub
- Hong Kong has been actively encouraging crypto firms and aims to strengthen its position as a global financial center
Hashkey Exchange, a prominent cryptocurrency financial services group based in Asia, has become the first entity in Hong Kong to secure a license under the city’s new licensing regime. The approval of this, which allows Hashley to offer retail services to crypto traders, comes just two months after Hong Kong introduced its Virtual Asset Service Provider licensing regime, aiming to establish itself as a global hub for the cryptocurrency industry.
Hong Kong Rolls Out Licensing Carpet
Hong Kong’s welcoming approach towards crypto firms stands in contrast to its neighboring country, China, which continues to enforce a ban on crypto transactions as part of a broader crackdown initiated in September 2021. In contrast, Hong Kong has actively encouraged crypto businesses, even urging banks to collaborate with them.
To further solidify its position as a global financial center, Hong Kong authorities released policy statements regarding cryptocurrencies in October, leading to the passage of a full licensing regime for virtual asset service providers in December.
Hashkey Had Been on Voluntary Program
Previously, Hashkey and another exchange, OSL, were the only two licensed exchanges in the city as part of the earlier voluntary program. However, the new rules mandate that crypto trading platforms must obtain a license to serve retail investors in Hong Kong.
In June, a government study raised concerns about Hong Kong falling behind its East Asian and Gulf counterparts in terms of web3 development, indicating the city’s determination to bolster its cryptocurrency ecosystem and remain competitive in the rapidly evolving world of blockchain technology.
