Crypto exchange, HashKey Pro, applies for license upgrade in Hong Kong
HashKey Pro, a cryptocurrency exchange based in Asia, has applied for a license update from Hong Kong’s Securities and Futures Commission (SFC) per the city-state’s new virtual asset trading licensing system.
According to regional news outlets, HashKey Pro, part of the digital asset financial services firm HashKey Group, does not anticipate any problems with getting its application approved. It hopes to begin providing services for virtual assets to retail crypto investors in the coming weeks.
The crypto exchange only supports a small number of digital assets at the moment, including bitcoin (BTC), ether (ETH), Tether (USDT), and USD Coin (USDC). The license will allow the exchange to provide users with a larger selection of digital assets.
HashKey Group to raise $200 million
With Hong Kong making strides toward regulatory clarity, HashKey Pro sees an opportunity to establish itself as a prominent player in the crypto industry.
In May, the crypto exchange’s parent company, HashKey Group, made public its intention to raise up to $200 million to help it take advantage of Hong Kong’s resurgence as a potential crypto hub. It signified the firm’s confidence in its growth potential and the evolving landscape of digital assets.
By securing substantial investment, HashKey hopes to develop its financial services further and expand its operations. Reports indicate that the funds raised will likely strengthen infrastructure, enhance technological capabilities, and foster partnerships to provide a comprehensive and secure trading experience for the exchange’s users.
Strict new licensing requirements
Hong Kong’s retail crypto trading licensing system, introduced in June, aims to regulate and bring oversight to the virtual asset trading platforms operating in the region.
Under it, virtual asset platforms must acquire insurance and ensure that “cold wallets,” which store digital assets offline, are protected by at least 50%.
On the other hand, the new law demands that the platforms provide 100% insurance protection for “hot wallets,” which store assets online.
Furthermore, the cryptocurrencies eligible for trading on these platforms must meet specific criteria as large virtual assets and obtain prior approval from the SFC.
Additionally, it is now deemed a criminal offense for licensed platforms to aid their unlicensed counterparts in their promotional activities.
However, platforms already operating in Hong Kong before June 6 have been granted a transitional period, during which they will need to apply for a license within one month to ensure their continued operations.
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