HashKey has become the first crypto exchange to secure a license to provide retail trading services in Hong Kong under the city’s newly-launched cryptocurrency regulations. Hong Kong’s efforts to regulate the industry have been well-received by industry players as the city seeks to be a top destination for web3 and crypto.

HashKey Taps Standard Chartered to Offer Deposit and Withdrawal Services

HashKey Exchange obtained the license to offer retail crypto trading services in Hong Kong, marking the first company to secure that permit under the city’s new crypto regulatory regime. According to a Thursday statement, the move will enable HashKey to “expand its business scope from serving professional investors to retail users” after acquiring an upgrade of its existing licenses.

HashKey teamed up with Standard Chartered to enable currency deposits and withdrawals. In addition, HashKey also announced the rollout of its crypto over-the-counter trading service in Hong Kong.

Based in Hong Kong, HashKey and rival exchange OSL were the only crypto trading platforms to obtain permits under the city’s previous voluntary licensing program. HashKey offers a variety of services to its clients, from venture funding to asset management and trading. Earlier this year, the group was engaged in early talks to raise between $100 million and $200 million at a valuation of more than $1 billion.

Hong Kong’s Crypto Regulation Aimed At Restoring the City’s Financial Hub Status

Hong Kong’s new crypto regulatory framework allows crypto exchanges to offer services to retail and institutional investors only after they secure and comply with the licensing regime developed to limit the risky practices highlighted in the 2022 market downturn, such as the FTX crash.

Hong Kong’s mandatory crypto framework was officially launched in June, as China’s special administrative region strives to restore its financial hub status. The move spurred significant interest among crypto companies, mainly because it coincided with an intense crackdown on the industry in the US.

Last month, the Hong Kong government introduced a new program to train virtual asset traders. Moreover, the government also said it intends to launch separate training programs to attract major wealth management firms and facilitate plans to attract more family offices to the city.

This article originally appeared on The Tokenist

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