Hong Kong’s HashKey Exchange has announced it will allow retail investors to trade Bitcoin (BTC) and Ethereum (ETH) starting August 28, with a key restriction: investments cannot exceed 30% of total assets. The exchange reiterated that it does not accept users from mainland China for compliance reasons.
Key Details of the Announcement
- Launch Date: August 28, 2023
- Eligible Coins: Initially limited to BTC and ETH.
- Investment Cap: 30% of a user’s net assets. Exceeding this triggers risk warnings and trading limits.
- Geographic Restrictions: No services for mainland Chinese residents.
Graded Investor System
HashKey will implement a tiered system for retail traders, assessing:
- Experience: Via KYC (Know Your Customer) checks.
- Risk Tolerance: Through questionnaires.
- Knowledge: Understanding of virtual assets.
"New investors will face stricter limits," said Livio Weng, COO of HashKey Group.
Payment and Partnerships
- Fiat Support: USD deposits/withdrawals via partner banks; HKD not yet available.
- Payment Methods: Only debit cards (no credit cards).
- Brokerage Collaborations: 4–5券商 integrated for client access; more expected by 2024.
Regulatory Landscape
- No Margin/Derivatives: Currently prohibited by Hong Kong’s Securities and Futures Commission (SFC).
- Future Plans: Custodial services and potential spot crypto ETF backing.
Other Licensed Exchanges
- HKVAX: Third licensed platform; aims to launch OTC and STO (Security Token Offering) services in 6 months.
FAQs
Q: Can mainland Chinese users trade on HashKey Exchange?
A: No. The exchange explicitly blocks mainland China-based registrations.
Q: What happens if I invest over 30% of my assets?
A: The platform will display warnings and restrict further transactions (self-reported totals only).
Q: Will HKD be supported soon?
A: Not immediately—USD is the initial fiat option.
👉 Learn how to securely trade crypto in regulated markets
Industry Outlook
While Hong Kong embraces crypto, cross-border capital flows remain restricted by mainland policies. Critics like Joseph Yam (ex-HKMA chief) liken crypto trading to gambling, hinting at future regulatory debates.