Hong Kong has issued the first license for retail cryptocurrency trading

Cryptocurrency exchange HashKey Exchange has been authorized to provide services to retail investors in Hong Kong

Cryptocurrency exchange HashKey Exchange has become the first company in Hong Kong. Which has been licensed under the region’s new licensing regime. And which allows cryptocurrencies to offer retail services.

HashKey has been granted Type 1 (securities transactions) and Type 7 (automated trading services) licenses. And can now serve retail investors in the region, the company said in a statement.

On April 27, the Hong Kong Monetary Authority (HKMA) issued a circular to banks to clarify the rules for opening accounts for cryptocurrency companies. The document clarifies how banks should conduct customer due diligence (CDD).

On June 1, 2023, Hong Kong introduced a new licensing regime for companies providing cryptocurrency trading services.

Our experts note that at the end of June, the Hong Kong unit of British bank HSBC allowed clients to trade shares of cryptocurrency ETFs. It was noted that the purchase of shares of four cryptocurrency exchange traded funds will be available to users through official trading applications.

Hong Kong’s first official crypto exchange HashKey Exchange will not provide services to users from 34 countries. Also including Russia, Iran, South Africa and Myanmar

The exchange does not restrict access to clients from the USA, Japan, China and a number of other countries. But on condition that they live in the territory of states where the circulation of digital assets is not restricted. They will have to confirm their location address and phone number during the verification procedure.

From the user agreement also became known that the processing of payments for the HashKey Exchange is engaged in the Asian division of the bank JPMorgan Chase. And one more partner bank will become ZA Bank in the future.