The crypto exchange upgraded its type 1 and type 7 licenses to include services approved for Hong Kong retail customers.
Haskkey’s former license only permitted the entity to do business with professional investors in the city-state.
Hong Kong has officially issued its first crypto license two months after regulators introduced a Virtual Asset Service Provider registration policy.
The new licensing regime forms part of an effort to position Hong Kong as a global crypto hub and pull digital asset businesses into the special administrative region in China.
Hong Kong’s regulator issued its inaugural crypto license to Hashkey Exchange as the city-state aims to position itself as a friendly jurisdiction for digital asset businesses. The platform can now offer crypto services to local retail customers, per reports.
Hashkey Exchange, a part of the Asia-based Hashkey Group which offers crypto financial services, secured the first license in the region after upgrading its existing type 1 and type 7 licenses. Both licenses permitted Hashkey to service professional traders.
Also, previous permits allowed Hashkey to quickly tap the new licensing regime introduced on June 1. The crypto exchange “shall at all times be in compliance with the requirements”, a spokesperson for the Securities and Futures Commission said referencing the rules guiding crypto operators.
According to Hashkey, the license for expansion of its business operations and service growing demand in the city-state following the passing of a licensing law to bootstrap crypto activity and draw in digital asset businesses.
Hong Kong’s Crypto Push
Regulators issued the first crypto license to Hashkey two months after introducing a registration pathway for operators. The policy includes guidelines for Virtual Asset Service Providers Hong Kong authorities push to level with counterparts in East Asia and the Gulf despite a crypto ban in mainland China.
Monetary authorities are also agitating for banks like HSBC, Standard Chartered, and Bank of China to onboard crypto businesses as customers.