HashKey CEO Livio Weng criticized Hong Kong’s latest rules round crypto buying and selling, expressing issues that they might impede entry for worldwide purchasers.
Hong Kong’s regulatory framework mandated that every one crypto exchanges working throughout the metropolis should submit purposes for regulatory approval by February this yr. In response, 24 firms, together with distinguished gamers equivalent to Bybit, OKX, and Crypto.com, utilized for these licenses.
Crypto exchanges that did not submit license purposes are required to discontinue companies by Could.
Weng lately instructed the Monetary Occasions that HashKey’s resolution to launch a Bermuda-licensed alternate this week was partly as a result of issues that Hong Kong’s new rules may limit entry for worldwide buyers.
He mentioned they create vital limitations for “loads of world customers” searching for to take part within the Hong Kong market. He additional cautioned that issuing an extreme variety of licenses may very well be detrimental to Hong Kong, contemplating the restricted measurement of its home market.
China Ties Forged Shadow on Hong Kong’s Crypto Future
HashKey presently holds one in all solely two licenses granted for digital asset exchanges in Hong Kong. The opposite licensed alternate, OSL, lately accomplished a sale of almost 30% of its stake to BGX. Whereas particulars stay unclear, sources aware of the deal reportedly described BGX as an unlicensed cryptocurrency group with ties to China.
These developments have forged doubt on the long-term sustainability of working below Hong Kong’s present regulatory framework for crypto exchanges, regardless of continued curiosity from new firms searching for to enter one of many world’s most dynamic crypto buying and selling markets.
Too Stringent for International Traders?
The present rules limit alternate clientele to people who cross know-your-customer (KYC) checks. They have to additionally possess funds inside an area checking account or accounts held in a restricted number of accepted abroad jurisdictions.
In line with Weng, these rules require revision with a view to embody a broader spectrum of worldwide buyers. He argued that with out such modifications, the market would battle to maintain even a fraction of the preliminary 24 candidates, doubtlessly limiting viability to as few as 4 licensed exchanges.