Hong Kong’s HashKey launches first crypto trading app for retail investors, gives away new token

The HashKey Exchange app went live on Wednesday, making it Hong Kong’s first licensed exchange to offer retail trading of bitcoin and ether on mobile
The move comes as Hong Kong continues to deal with the fallout from the JPEX scandal amid its push to become a global crypto hub

Digital currencies

Xinmei Shen

Published: 6:00pm, 1 Nov 2023

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Hong Kong cryptocurrency firm HashKey Group, one of two virtual asset exchanges in the city approved to serve retail investors, has launched the first trading app to get approval from the Securities and Futures Commission (SFC) since the JPEX scandal rocked the local industry.

The HashKey Exchange app went live on Wednesday after receiving approval from Hong Kong’s securities regulator last Friday to offer “full mobile trading capabilities”, the company said on Wednesday.

With the app, HashKey is expanding its mobile retail offerings, having previously been limited to serving professional investors under an earlier voluntary licensing regime. Hongkongers will be able to buy bitcoin and ether through the app using either Hong Kong dollars or US dollars deposited directly from local bank accounts, HashKey Group chief operating officer Livio Weng said.

The launch comes one year after the Hong Kong government unveiled a series of policy shifts aimed at boosting the virtual asset sector, including a new mandatory licensing scheme for cryptocurrency platforms that would allow them to sell tokens with large market capitalisations to retail traders. The new licensing regulation went into effect in June with a one-year grace period, with no new exchanges yet to be approved. HashKey and rival OSL had their previous licences upgraded in August.

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Appetite for trading on the HashKey Exchange app, the city’s first fully compliant retail-facing crypto trading app, is expected to be an indicator of Hong Kong’s success in bolstering the sector amid recent scandals and public scepticism.

The effort to court crypto business comes amid a confluence of challenges. While the new rules largely align with international norms, the process in Hong Kong has proven to be expensive amid a bear crypto market.

Hong Kong also continues to deal with the fallout from the recent scandal over the allegedly fraudulent JPEX exchange, which the SFC first warned about in mid-September. With thousands of complaints against the exchange, more than HK$1.5 billion (US$192 million) in lost funds, and more than two dozen arrests, the scandal has become one of the city’s biggest financial frauds, denting trust in virtual assets.

HashKey said on Wednesday that since the launch of its retail platform in August, total trading volume has exceeded US$600 million, with the 24-hour trading volume on October 30 surpassing US$100 million.

While the app is limited to just two tokens for now, HashKey is promising a “smooth and simple” experience that goes against the stereotype of licensed platforms being difficult to use, Weng said on Wednesday. The time required for users to fill in and submit information for the know-your-customer (KYC) process, for example, has been reduced from 28 minutes to just eight minutes, according to Weng.

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The cryptocurrency scandal gripping Hong Kong

HashKey Group, established in Hong Kong in 2018, also operates a digital asset brokerage and a venture capital arm. HashKey Exchange became Hong Kong’s second licensed exchange in November last year, two years after OSL received its licence.

So far, five companies have applied for the new licence, according to the SFC, while a range of other exchanges have announced their intention to pursue one.

HashKey Exchange is now rewarding new users with its newly launched platform token HSK, which will be officially listed on its exchange sometime next year, the company said on Wednesday. It plans to mint a total of 1 billion HSK, which will not initially be sold to retail investors, the company said.