HashKey Pro, an Asian-based crypto exchange, has applied for a license upgrade to the Securities and Futures Commission (SFC) of Hong Kong to offer virtual asset services.
Regional media sites report that the exchange does not foresee any issues with getting its application granted. In the upcoming weeks, it aims to start offering services for virtual assets to small-scale cryptocurrency investors.
HashKey Pro is looking to expand its operations
HashKey Pro recently mentioned that it sees an opportunity to develop itself as a key player in the cryptocurrency market as Hong Kong progresses toward regulatory certainty.
Currently, the cryptocurrency exchange only accepts a select few digital currencies, such as bitcoin (BTC), ether (ETH), tether (USDT), and USD Coin (USDC). The exchange will offer users a wider range of digital assets by obtaining the license.
HashKey Group, the parent company of the cryptocurrency exchange, announced in May that it intended to raise $100-$200 million to help it capitalize on Hong Kong’s comeback as a potential center for the cryptocurrency industry. It represented the company’s faith in its ability to grow and the changing nature of the digital asset market.
HashKey intends to extend its operations and develop its banking services by securing a sizable investment. According to reports, the funds raised will expand technological capabilities, build partnerships, and strengthen infrastructure to give exchange customers a comprehensive and secure trading experience.
Hong Kong establishing virtual asset regulation
Hong Kong’s trading platforms for virtual assets are intended to be regulated and overseen by Hong Kong’s retail crypto trading license system unveiled in June.
The guidelines mandate that “cold wallets,” which hold digital assets offline, be protected by at least 50% and that virtual asset platforms get insurance. In addition, “hot wallets,” online asset storage systems, have 100% insurance coverage through the platforms. Cryptocurrencies must meet particular requirements and have prior SFC approval to qualify as major virtual assets for trading on these platforms. It’s also considered illegal for licensed platforms to assist their unlicensed counterparts in their marketing efforts.
Notably, platforms already functioning in Hong Kong before June 6 were granted a transitional period. However, they must apply for a license within one month to continue their activities during this time.
