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Cryptocurrency exchange HashKey Group will launch Bitcoin (BTC) and Ethereum (ETH) trading services for its Hong Kong clients on August 28.
In an interview with local media, Weng Xiaoqi, Chief Operating Officer of HashKey, revealed that its exchange business will start offering retail cryptocurrency trading services. The company applied for a license in July and received approval earlier this month.
According to Weng, HashKey chose to start with BTC and ETH because they have the widest spread and the lowest risk. He also added that HashKey is considering providing margin and derivatives products if it gets approval from the Hong Kong Securities and Futures Commission (SFC).
The exchange is also reportedly in talks with several major Hong Kong banks to facilitate the integration of fiat currencies, including the Hong Kong dollar (HKD) and the US dollar.
Weng said HashKey is also in negotiations with a number of Hong Kong brokerage firms to develop listings related to its crypto trading services.
HashKey is also expected to employ an investor rating system utilizing Know Your Customer (KYC) to assess an investor’s experience.
The system will limit the early trading activities of beginners while giving more leeway to experienced crypto traders. In addition, the exchange will issue risk warnings and restrict trading activities by its clients if they invest more than 30% of their funds in cryptocurrencies.
Additionally, HashKey only accepts bank cards for transactions to prevent users from countries that ban crypto trading, such as mainland China, from registering for its services.
The company’s announcement came after it became the first crypto exchange to receive approval from Hong Kong’s regulators to offer retail crypto trading services. It initially received a Type 1 license under the territory’s securities legislation. The company then acquired a second license called Type 7, which enabled it to offer automated trading services to both retail and institutional clients.
In addition to HashKey, the SFC also granted OSL, another city-based exchange, permission to offer retail crypto trading services for Bitcoin and Ethereum.
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