Hong Kong has initiated a significant move in welcoming cryptocurrency by providing a retail trading license to the platform HashKey. It’s a first in the country. The development hints at Hong Kong’s readiness to be a crypto hub in Asia, paving the way to digital assets for retail investors. The platform, which previously served mainly professional traders, will now include retail clients services.
Transparency in operations is an essential aspect, and leading audit firms KPMG and EY will ensure it. The platform will hold investor funds in separate accounts, emphasizing the city’s strive towards secure regulations. The license is one part of Hong Kong’s move towards structured regulation of cryptocurrencies.
The city’s regulator, SFC, announced the framework for licensing back in June, underlining the necessity for Hong Kong platforms to acquire a license by March. SFC has offered a flexible choice in cryptocurrencies for retail investors, focusing on those established and liquid. For the start, HashKey plans to introduce Bitcoin and Ethereum.
The partnership with Standard Chartered Bank will ensure fiat-crypto conversions. It’s not the first time this has happened in Hong Kong; local bank ZA Bank announced similar collaborations back in May.
On the flip side, fears over volatility in the crypto market linger on, as acknowledged by HashKey’s CFO Eric Zhu. These concerns are not unjustified given the past crypto downturns. Yet, there seem to be more reasons for optimism here, with expectations being that FLEX Coin, Wall Street Memes, XDC Network, Cowabunga, and Hedera could be the most promising cryptos to buy given their promising fundamentals and/or technical analysis.
Overall, the licensing system and the ongoing partnerships indicate Hong Kong’s measured approach towards offering regulated access to cryptocurrencies for mainstream investors. As the world seems more intent on adopting cryptos, investors looking to diversify their portfolios now have new licensed options offering regulated access to this asset class.
Trust is paramount when dealing with investments of any kind, and Hong Kong’s move seems to offer a degree of approval and structure in an industry famous for its wild west approach. It’s a positive step, but it remains to be seen how this will impact the wider crypto world in terms of fostering confidence in digital currencies.
Source: Cryptonews
