Weather     Live Markets

HashKey Group COO Livio Weng has expressed concerns about Hong Kong’s recent regulations surrounding crypto trading, fearing that they may limit access for international clients. As part of the regulatory framework, all crypto exchanges operating in Hong Kong were required to submit applications for regulatory approval by February, with companies such as Bybit, OKX, and Crypto.com among the 24 that applied. Exchanges that did not submit applications are required to cease operations by May, prompting Weng to launch a Bermuda-licensed exchange to address concerns about restricted access for international investors. He warned that issuing too many licenses could be harmful to Hong Kong due to its limited domestic market size.

HashKey currently holds one of the two licenses granted for digital asset exchanges in Hong Kong, with the other held by OSL, which recently sold nearly 30% of its stake to BGX, an unlicensed cryptocurrency group reportedly linked to China. These developments have raised questions about the sustainability of operating under Hong Kong’s current regulatory framework for crypto exchanges, despite interest from new companies seeking to enter the dynamic crypto trading market. The regulations currently require exchange clients to pass KYC checks and have funds in a local bank account or select approved overseas jurisdictions.

The TON Foundation has partnered with HashKey to support the open network and increase access to fiat on and off-ramps for users of the Telegram wallet in the Asia-Pacific region. The partnership aims to enhance accessibility and user experience within the TON ecosystem, reflecting a shared commitment to integrating cryptocurrency and blockchain technology into daily life. This collaboration could help facilitate the use of digital assets and advance crypto adoption in the region, particularly among users of the Telegram platform.

The concerns raised by HashKey Group COO Livio Weng highlight the potential challenges faced by crypto exchanges operating in Hong Kong due to recent regulatory changes. The decision to launch a Bermuda-licensed exchange reflects a strategic response to safeguard access for international investors amid uncertainties about the impact of the new regulations. With limited licenses granted for digital asset exchanges in Hong Kong, the industry faces questions about its long-term viability and ability to attract new players, especially in light of recent developments involving companies with ties to China.

The sale of a significant stake in OSL to BGX, an unlicensed cryptocurrency group reportedly linked to China, has added to the uncertainty surrounding the future of crypto exchanges in Hong Kong. While interest from new companies remains strong, concerns about regulatory restrictions and ties to China may impact the attractiveness of the market for potential investors and industry players. The need to comply with stringent regulations, including KYC checks and financial requirements, adds another layer of complexity for exchanges operating in the region, potentially affecting their ability to serve a diverse international clientele.

Despite the challenges and uncertainties facing crypto exchanges in Hong Kong, partnerships such as the one between the TON Foundation and HashKey offer opportunities to enhance accessibility and user experience within the ecosystem. By collaborating to support the open network and expand fiat on and off-ramps for Telegram wallet users in the Asia-Pacific region, the partnership aims to drive adoption of cryptocurrency and blockchain technology in daily life. This proactive approach to integrating digital assets into mainstream usage could help to address some of the concerns raised by industry players, while promoting innovation and growth within the crypto trading market in Hong Kong and beyond.

Share.
Exit mobile version