Crypto Exchange, HashKey Pro, Requests Hong Kong License Upgrade

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HashKey Pro, an Asia-based cryptocurrency exchange, has applied for a license update with the Hong Kong Securities and Futures Commission (SFC) in accordance with the city’s new virtual asset trading license system- State.

According to regional media, HashKey Pro, part of digital asset financial services company HashKey Group, does not foresee any problems getting its application approved. It hopes to start providing services for virtual assets to retail crypto investors in the coming weeks.

Hong Kong-compliant exchange Hashkey Pro is expected to receive approval to upgrade its license in the coming 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

The crypto exchange only supports a small number of digital assets at the moment, including bitcoin (BTC), ether (ETH), Tether (USDT), and USD Coin (USDC). The license will allow the exchange to provide users with a greater selection of digital assets.

HashKey Group to raise $200 million

As Hong Kong makes strides towards regulatory clarity, HashKey Pro sees an opportunity to establish itself as a top player in the crypto industry.

In May, the crypto exchange’s parent company, HashKey Group, went public with plans to raise up to $200 million to help it capitalize on Hong Kong’s resurgence as a potential crypto hub. This signified the company’s confidence in its growth potential and the changing landscape of digital assets.

By securing substantial investment, HashKey hopes to further develop its financial services and expand its operations. Reports indicate that the funds raised will likely strengthen infrastructure, improve technology capabilities and foster partnerships to provide a complete and secure trading experience for users of the exchange.

Strict new licensing requirements

Hong Kong’s retail crypto trading licensing system, introduced in June, aims to regulate and oversee virtual asset trading platforms operating in the region.

Under it, virtual asset platforms must carry insurance and guarantee that “cold wallets”, which store digital assets offline, are at least 50% protected.

On the other hand, the new law requires platforms to provide 100% insurance protection for “hot wallets”, which store assets online.

Additionally, cryptocurrencies eligible for trading on these platforms must meet specific criteria as large virtual assets and obtain prior approval from the SFC.

Additionally, it is now considered a criminal offense for licensed platforms to assist their unlicensed counterparts in their promotional activities.

However, platforms already operating in Hong Kong before June 6 have been granted a transitional period, during which they will have to apply for a license within one month to ensure their continued operations.

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