Hong Kong’s HashKey Exchange Challenges Coinbase With Bermuda License

Hong Kong crypto exchange HashKey is willing to take the fight with global crypto exchanges like Coinbase as it seeks to secure a new Bermuda license for offering crypto futures for 20 different crypto coins. This development comes as HaskKey faces strict regulatory measures in Hong Kong for offering crypto derivative products to customers.

HaskKey Securing the Bermuda License

In a recent interview with a local news publication, Weng Xiaoqi, Chief Operating Officer of HashKey Group, revealed the acquisition of Bermuda’s “comprehensive digital asset investor protection system license” and the imminent launch of the HashKey Global trading platform, scheduled for today. Initially, the platform will offer over 20 currencies to eligible retail investors, with plans to introduce futures and other products within the next quarter.

Xiaoqi expressed optimism that the operational data and experience garnered from these products would streamline the approval process with the Hong Kong Securities and Futures Commission, thereby advancing the regulatory framework in Hong Kong.

Xiaoqi noted that HashKey Exchange in Hong Kong currently serves approximately 170,000 customers, with an estimated fourfold potential customer base that doesn’t meet the existing requirements. To tap into this untapped potential, HashKey established the HashKey Global platform, facilitating direct trading with stable currencies like USDT and USDC.

Presently, Hong Kong retail investors are limited to trading Bitcoin and Ethereum. Moreover, HashKey’s previous applications to the SFC are still pending approval. With HashKey’s current asset management scale exceeding HK$2 billion, the launch of the global platform will quadruple this figure to HK$8 billion by year-end.

Competing With Coinbase and Global Exchanges

In a bold statement, Hashkey revealed its ambitious objective of outpacing Coinbase within the next five years. Interestingly, the company does not view non-compliant exchanges like Binance and Huobi as direct competitors.

Instead, it has outlined diverse strategies for achieving its goal, including plans for going public via various avenues such as China, Hong Kong stocks, and Security Token Offerings (STOs). Hashkey intends to leverage the HSK coin to facilitate transaction mining and drive engagement within its ecosystem.

Earlier this year, crypto exchange HasKey raised a staggering $100 million at a $1 billion valuation.