In simpler terms, it seems that the cryptocurrency market in Hong Kong is experiencing rough waters as regulated exchanges choose to expand their businesses outside of the country due to regulatory issues.
HashKey, one of the two authorized cryptocurrency platforms in Hong Kong, sought expansion beyond its borders by obtaining a license in Bermuda. This move was motivated in part by concerns that Hong Kong’s revised regulatory policies could restrict the exchange from engaging with global investors.
In an interview with the Financial Times, HashKey Group’s COO Livio Weng explained that they expanded beyond Hong Kong due to the limited size of the local market. He further mentioned that the heavy regulations in the region prevent many international users from accessing their services.
Previously, according to crypto.news, HashKey introduced a new international business entity named HashKey Global. This venture caters exclusively to eligible retail investors. In the upcoming quarter, they intend to roll out offerings such as futures, staking, and additional financial services.
In regard to Hong Kong’s regulatory stance, Weng suggested adopting more flexible regulations. He believed that simplifying the rules is essential for Hong Kong to establish itself as a welcoming destination for cryptocurrencies.
At present, Hong Kong restricts crypto exchanges to onboard clients who have undergone Know-Your-Customer (KYC) procedures and hold funds in local bank accounts. Weng expressed that granting licenses to numerous exchanges wouldn’t be beneficial as the local market is insufficient to accommodate more than four of them.
At the same time, HashKey’s competitor, OSL, appears to be dealing with similar issues. They recently sold a 30% stake to BGX, which sources close to the situation call an “unauthorized crypto organization with ties to China.” However, OSL has yet to make any public comments regarding this transaction.
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2024-04-12 12:04