HashKey Group is approved by the Hong Kong Securities Regulatory Commission to carry out virtual asset over-the-counter trading (OTC)

On February 24, the digital asset financial service provider HashKey Group (“HashKey”) announced that it had obtained the approval of the Hong Kong Securities and Futures Commission (“SFC”), and its Hash Blockchain Limited (“HBL”) could carry out the over-the-counter trading (OTC) business outside the virtual asset platform.

Interpretation of this information:

HashKey Group, a leading provider of digital financial services, has officially received approval from the Hong Kong Securities and Futures Commission (SFC) to carry out over-the-counter (OTC) trading outside of the virtual asset platform. This milestone demonstrates their commitment to expanding their reach within the digital asset space while complying with regulatory guidelines.

By obtaining approval from the SFC, HashKey’s Hash Blockchain Limited (HBL) can now offer OTC services using their advanced trading technology to clients beyond the virtual asset platform. This decision to offer OTC trading services outside of the platform allows the company to increase their client base and reach a broader audience while simultaneously conforming to regulations.

OTC trading is considered an alternative to spot trading on an exchange and is carried out by directly negotiating the terms of the trade with the counterparty. It offers advantages of increased privacy, price flexibility, and the ability to complete high-value trades without impacting the overall market prices. This method of trading is preferred by many institutional clients and high net worth individuals.

HashKey’s announcement comes at a time when the world is undergoing a rapid transformation of traditional financial systems into digital financial systems. The pandemic has also accelerated this transformation, leading to an increase in demand for digital assets as a form of investment. HashKey’s move into the OTC space outside the virtual asset platform signifies their confidence in the growing demand for digital assets and their commitment to providing the highest level of services to their clients while adhering to regulatory guidelines.

In conclusion, HashKey’s approval to carry out OTC trading outside the virtual asset platform by the Hong Kong Securities and Futures Commission is a testament to their commitment to expanding and adapting to the digital financial system. The decision provides the company with a significant opportunity to widen their reach to clients, particularly institutional clients, and high net worth individuals who prefer greater privacy in their trades.