Hong Kong approves first virtual asset trading licences since 2020 in battle for crypto crown with Singapore
- Hash Blockchain, a subsidiary of HashKey Group, has received SFC approval to operate a virtual asset trading platform for professional investors
- The move comes on the heels of the Hong Kong government’s high-profile pledge last month to restore its status as a virtual asset financial centre
Hong Kong handed out its first new virtual asset trading operating licences in nearly two years, as the city battles against Singapore to establish itself as a cryptocurrency hub despite sinking token values.
Hash Blockchain, a subsidiary of Hong Kong-headquartered blockchain firm HashKey Group, has received approval from the city’s Securities and Futures Commission (SFC) to operate a virtual asset trading platform for professional investors, the company said on Thursday.
HashKey is the second platform to secure such licences since authorities introduced an opt-in licensing framework in 2019.
OSL, a subsidiary of Hong Kong-listed digital asset investment firm BC Technology Group, received the city’s first approvals in December 2020, which included a Type 1 licence for dealing in securities and a Type 7 licence for providing automated trading services.
Among a set of new measures to boost its attractiveness for cryptocurrency-related businesses, Hong Kong plans to introduce a new licensing regime that will allow retail investors to trade virtual assets. The measure will be put in place following an amendment of the city’s anti-money-laundering ordinance next March, officials said.
HashKey, which offers crypto asset management services to institutional clients, will now work on launching a new virtual asset trading platform named HashKey Pro, said Michel Lee, executive chairman at HashKey, during a press briefing on Thursday.