Positive Feedback Expected For HashKey’s License Application
Hong Kong’s virtual asset trading platform licensing system was launched in June, marking an important step towards regulating the cryptocurrency industry in the region. As part of this development, HashKey Exchange Business, a voluntary-licensed cryptocurrency platform, has submitted an application for a license to the Securities and Futures Commission (SFC). The company expects its application to be approved in the coming weeks, paving the way for the launch of a virtual asset trading platform in the near future.
Hong Kong-compliant exchange Hashkey Pro is expected to receive approval to upgrade its license in the next few weeks and begin providing virtual asset services to retail investors. Currently only BTC ETH USDT USDC USD and one STO token are available on Hashkey Pro.…
— Wu Blockchain (@WuBlockchain) July 8, 2023
Positive Feedback for HashKey’s License Application
During the application process, HashKey received positive feedback, indicating a promising outlook for the company. Obtaining the license is seen as a significant milestone in HashKey’s growth and positions the company as a leader in the mainstream digital asset investment transformation within Hong Kong.
To comply with the existing regulations, virtual asset platforms are required to secure insurance coverage and provide 50% protection for “cold wallets,” which store assets offline. For “hot wallets” that store assets online, full protection of 100% is mandated. Furthermore, cryptocurrencies eligible for trading must be classified as large virtual assets and receive prior approval from the SFC. It is important to note that aiding unlicensed platforms in their publicity efforts is considered a criminal offense under the current regulations.
The 🇭🇰 Gov’t has established the Task Force on Promoting Web3 Development. Dr Xiao Feng, Chairman of HashKey Group, is one of the 15 non-official members.#Web3 #HongKong https://t.co/XO8V8qaekM
— HashKey Group (@HashKeyGroup) July 3, 2023
Transitional Period Granted
However, a transitional period has been granted to platforms already operating in Hong Kong before June 6. These platforms are required to apply for a license within one month to continue their operations legally. The introduction of the virtual asset trading platform licensing system aims to enhance investor protection and promote the growth of a secure and regulated cryptocurrency market in Hong Kong. By implementing robust regulatory measures, the authorities seek to address concerns related to money laundering, fraud, and market manipulation.
The licensing system provides a framework for the operation of virtual asset platforms, ensuring that they meet stringent regulatory requirements. As the cryptocurrency industry continues to gain popularity and recognition, the licensing system helps to establish trust and confidence among investors and businesses operating in this space.
