Hong Kong’s inaugural licensed retail cryptocurrency exchange HashKey targets 2024 market surge.

Retail cryptocurrency traders in Hong Kong can now utilize a locally established cryptocurrency exchange, as HashKey Exchange introduced retail trading services to users in the special administrative region of China on Aug. 28.

Previously, the company was authorized to cater to professional and institutional investors before receiving Type 1 and Type 7 licenses from the Hong Kong Securities and Futures Commission (SFC) on Aug. 3. This development enabled HashKey to become the first licensed retail exchange in Hong Kong.

Data from Hong Kong’s treasury, banking, accounting, and Web3 sectors marked the commencement of retail trading at the Maritime Museum Central. Source: HashKey Exchange

As previously reported by Cointelegraph, the exchange now provides Bitcoin (BTC) and Ether (ETH) trading pairs against the Hong Kong dollar, with plans to introduce additional tokens following its launch for retail users. HashKey has also confirmed support for deposits and withdrawals in both the United States dollar and Hong Kong dollar.

A representative from the company informed Cointelegraph that HashKey maintains a positive perspective on the advancement of Web3 in the region, which has been bolstered by backing from the government and the SFC. The exchange aims to onboard between 500,000 and one million users by the conclusion of 2023, both domestically and internationally.

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The representative from HashKey further noted that the exchange expects the onset of a new cryptocurrency bull market between 2024 and 2025. With retail investors now permitted to acquire and trade cryptocurrencies, the company forecasts that Hong Kong’s crypto user base will grow to 10–15 million over the next two years.

A statement from HashKey’s chief operating officer, Livio Weng, emphasized the significance of supportive regulatory oversight from the Hong Kong government and the SFC as a crucial factor for the growth of the Web3 ecosystem:

“The emergence of regulatory compliance in Hong Kong will attract Web3 talents and capital from around the world, thereby accelerating technological and business innovation.”

Weng added that the developing environment in Hong Kong could initiate a “virtuous cycle of development with the industry,” with favorable regulatory conditions positioning the region as a viable alternative for Web3 firms to relocate.

HashKey’s exchange operates on the Hex Engine, which it claims is a high-performance trading system capable of handling 5,000 transactions per second.

The exchange has also implemented several regulatory measures in accordance with Hong Kong’s guidelines, including comprehensive user screening, Anti-Money Laundering checks, and transaction monitoring throughout its operations.

HashKey is also licensed to manage custody of both institutional and retail client funds, and its policy indicates that 98% of cryptocurrencies under management are kept in cold wallets.

The favorable yet regulated cryptocurrency ecosystem in Hong Kong is also drawing interest from global entities like Binance, which has participated in public discussions and policy-making processes, as previously noted by Cointelegraph.

The digital asset platform OSL also announced its SFC license upgrade on Aug. 3, which allowed the brokerage, exchange, and custody provider to extend its services to retail clients in Hong Kong. OSL executive director Dave Chapman informed Cointelegraph that its offerings for retail investors in Hong Kong have been available since the firm received the retail license upgrade.

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