HashKey Exchange Opens Retail Bitcoin Trading in Hong Kong

In June, Hong Kong launched a new licensing procedure for digital asset service providers. On 3rd August, Hong Kong-based HashKey Exchange, announced securing a license for securities trading and for automated trading services. These are licenses no 1 and 7 respectively. Moreover, the SFC relaxed its policy for HashKey Exchange to extend its services. Therefore, not just professional investors, now general retail customers can use the services and exchange offers. 

HashKey Exchange is set to open retail Bitcoin trading on August 28th. After obtaining the license, the exchange has announced that the platform is open for pre-registration. However, the KYC procedure is yet to be made available for general investors. Furthermore, they have added that this feature will be launched soon.

Moreover, there are reports that the HashKey exchange will launch a trading platform application specifically designed for general investors.

HashKey Exchange COO Weng Xiaoqi Reveals Key Features to the Media

During a recent interview with the media, Weng Xiaoqi, the Chief Operating Officer of HashKey Group, shared some valuable insights.

1. To ensure that investors have a proper understanding of virtual assets, HashKey Exchange is planning to introduce a grading system for general investors. This will involve assessing their risk tolerance and past experience through KYC procedures and using questionnaires. As for beginners, their investment opportunities will be restricted.
2. During this period, only Bitcoin (BTC) and Ethereum (ETH) are available for trading by general investors, as the majority of trading volume in the market is currently held by these two currencies.
3. Currently, the China Securities Regulatory Commission prohibits the offering of “margin” and “derivative” instruments. However, if approved, they will also implement a rating system for these products to cater to the varying requirements of users.

Also Read: Top Crypto Exchanges List in 2023

Why Retail Investors Shouldn’t Exceed 30% of Total Assets?

Investors who allocate more than 30% of their overall assets in virtual assets on the HashKey Exchange platform will receive a risk warning. Moreover, the platform reviews investment behavior. However, the platform cannot accurately determine the total assets of its users. Therefore, it mostly depends on the information that users provide.

HashKey Exchange intends to partner with various commercial banks, including note-issuing banks. This is to facilitate the deposit and withdrawal of fiat currency, starting with USD transactions. Unfortunately, HKD transactions are not present yet. The HashKey exchange recommends using bank cards for transactions on the current platform. Since the platform does not accept credit cards. Moreover, the platform does not allow registration for users residing in regions with restricted virtual assets. These regions are China, Japan, Malaysia, and other sanctioned countries or regions.