Hong Kong crypto exchange HashKey is willing to fight global crypto exchanges like Coinbase to secure a new Bermuda license for offering crypto futures for 20 different crypto coins. This development comes as HashKey faces strict regulatory measures in Hong Kong for offering crypto derivative products to customers.
In a recent interview with a local news publication, Weng Xiaoqi, Chief Operating Officer of HashKey Group, revealed the acquisition of Bermuda’s “comprehensive digital asset investor protection system license” and the imminent launch of the HashKey Global trading platform, scheduled for today.
HashKey Targets Quadrupling International Users
Through HashKey Global, individual investors can trade more than 20 cryptos with stablecoins, including Tether (USDT) and USD Coin (USDC). Futures trading product services are set to be launched within weeks.
Weng said that due to the current regulatory framework in Hong Kong, only retail investors with designated banking accounts and institutional investors can trade on HashKey.
The exchange has already accumulated around 170,000 users. Weng estimated that the number of potential users interested in trading who do not have access to the regional platform is four times the current user count.
To realize the potential and expand HashKey’s markets, the new global platform is positioned to target international users. This excludes China Mainland, Hong Kong, the United States, and other countries and regions with an active crypto ban.
A platform for Global Regulation Advancement
Individual investors in Hong Kong can only trade Bitcoin (BTC) and Ethereum (ETH). The Group submitted an application to the Securities and Futures Commission (SFC) in 2023 for four additional assets. However, they have not received any approval yet.
Weng believed that HashKey Global would primarily attract Chinese customers overseas and the Southeast Asian market. By the end of this year, the exchange could quadruple its total assets of HK$2 billion.
The global platform could function as a sandbox for the company to test new products and features. The operational experience may eventually benefit regulatory development in Hong Kong. Weng claimed the SFC hesitates to greenlight futures trading because of its risks.
Weng suggested using Bitcoin and Ethereum conservatively to influence regulators on futures trading via a global platform. He suggested that a successful trial period on HashKey Global could pave the way for regulatory approval in Hong Kong, ultimately benefitting the broader cryptocurrency ecosystem.
Related Reading | ZA Bank in Hong Kong Explores Stablecoin Partnerships
Rida Fatima
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