Navigating Hong Kong’s Crypto Regulations: Concerns and Revisions Needed
HashKey Group COO Livio Weng has raised concerns about the impact of Hong Kong’s recent regulations on crypto trading, warning that they could hinder access for international clients. The regulatory framework in Hong Kong now requires all crypto exchanges operating in the city to apply for regulatory approval, with a deadline for submission in February of this year. As a result, 24 companies, including major players like Bybit, OKX, and Crypto.com, have applied for these licenses, while those who failed to do so must cease operations by May.
Weng recently spoke to the Financial Times about HashKey’s decision to launch a Bermuda-licensed exchange, citing worries that the new regulations in Hong Kong could limit access for global investors. He emphasized that these regulations could create significant barriers for international users looking to participate in the Hong Kong market and cautioned against issuing an excessive number of licenses due to the city’s limited domestic market size.
The news comes amidst concerns about ties to China in the crypto industry in Hong Kong. HashKey currently holds one of only two licenses granted for digital asset exchanges in the city, with the other being 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 ongoing interest from new companies looking to enter the market.
In a separate development, TON Foundation has partnered with HashKey to enhance access to fiat on and off-ramps for Telegram wallet users in the Asia-Pacific region. The collaboration aims to support the “open network” and improve the accessibility and user experience of the TON ecosystem, reflecting a shared commitment to integrating cryptocurrency and blockchain technology into daily life.
