Asian digital asset management firm HashKey Group has announced the launch of a new crypto exchange to tap into professional and institutional investors in Hong Kong.
The crypto exchange, dubbed HashKey PRO, is set to launch in Q2 this year, aiming to tap into institutions, family offices, funds, and professional and accredited investors across the digital asset and blockchain ecosystem.
Client funds are held in segregated accounts that are separated from the exchange’s operations, the firm said in a release on Friday. The funds will be readily available for withdrawal at any time, and it will be protected by insurance, the firm added.
The exchange will offer fiat on-and-off-ramp support to users, meaning that users can directly transfer US dollars from their bank account to their fiat wallet at the exchange via SWIFT, the messaging system that enables financial institutions to transfer funds to each other. Currently, the platform accepts bank transfers from 16 countries globally and plans to expand its network in the future.
Initially, ZA Bank and Bank of Communications (Hong Kong) will serve as the settlement banks to facilitate the depositing and withdrawal of fiat currencies.
HashKey PRO holds the Type 1 (dealing in securities) and Type 7 (providing automated trading services) licences under the Securities and Futures Commission of Hong Kong, which enables the firm to operate a virtual asset trading platform.
Currently, virtual asset service providers (VASPs) that are licensed to operate in Hong Kong are required to obtain Type 1 and Type 7 licences. Starting from June 1, all VASPs, whether existing or new, will not only be required to hold the two licences mentioned above, but also the VASP licence under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022.
A slew of major centralised exchanges have announced their plans to operate in Hong Kong to ride on the city’s crypto ambition — including Seychelles-based OKX and Huobi Global. Most recently, crypto lender Amber Group has been reported to be mulling apply for the Hong Kong licences, its managing partner Annabelle Huang said in an interview with Bloomberg on Friday.
The Temasek-backed firm said that it is eyeing options for its Japan unit which includes a possible sale, per the same report.