《Why Do 90% of Brokerages Use HashKey?》
(This article is an AI's response)
1. What types of licenses are there in Hong Kong?
Hong Kong's virtual asset regulatory framework is based on the principles of equal business, equal risk, and equal regulation. To engage in virtual asset-related businesses in Hong Kong, the following types of licenses are mainly required:
Licenses under the Securities and Futures Ordinance (SFO):
Category 1 (Securities Trading): Can provide virtual asset trading distribution services
Category 4 (Advising on Securities): Provides virtual asset investment advisory services
Category 7 (Providing Automated Trading Services): Operates trading platforms in conjunction with VASP licenses
Category 9 (Asset Management): Manages investment portfolios where virtual assets account for more than 10%
Licenses under the Anti-Money Laundering Ordinance (AMLO):
VASP License (Virtual Asset Service Provider): Operates virtual asset trading platforms, providing non-securities token trading services
2. HashKey Group's License Layout
Achieved full license coverage for virtual asset businesses:
HashKey Exchange:
Category 1 License (Securities Trading)
Category 7 License (Providing Automated Trading Services)
VASP License (Operating Virtual Asset Trading Platform)
HashKey Capital:
Category 1 License (Securities Trading)
Category 4 License (Investment Advisory)
Category 9 License (Asset Management)
HBS (Hong Kong) Limited:
Category 1 License (Securities Trading)
Category 4 License (Investment Advisory)
This full license layout allows HashKey to provide comprehensive virtual asset services from trading, custody, asset management to investment advisory.
3. Current Status of Brokerages’ Virtual Asset Licenses
As of the end of June 2025, several brokerages in Hong Kong have upgraded their virtual asset-related licenses. Guotai Junan International became the first Chinese-funded brokerage to obtain a virtual asset trading license, directly providing clients with trading services for virtual assets like Bitcoin and Ethereum.
In addition, several local brokerages in Hong Kong, such as Victory Securities and Everbright Securities, have also completed the upgrade of Category 1 licenses. In the internet brokerage sector, Futu Securities' Cheetah Trading and Tiger Brokers' YAX have also obtained VASP licenses.
4. Why Brokerages Still Rely on HashKey Services
Although brokerages have obtained virtual asset trading licenses, most still choose to use HashKey's services, mainly for the following reasons:
1. Differences in Business Models
The licenses obtained by brokerages are mainly “distribution”-type licenses, not for operating their own exchanges. They provide clients with virtual asset trading channels by setting up omnibus accounts within licensed exchanges, rather than building their own trading platforms.
2. Advantages of HashKey’s Omnibus Services
HashKey Exchange's Omnibus account service has covered 90% of licensed brokerages in Hong Kong, providing bundled services such as virtual asset trading, custody, and settlement to over 30 institutions. The cumulative trading volume has exceeded HKD 30 billion, with nearly a fivefold increase in trading volume over the past six months compared to the previous period.
3. Considerations of Technology and Compliance Costs
Building a self-operated virtual asset trading system requires significant technological investment and compliance costs. As Hong Kong's largest licensed virtual asset exchange, HashKey has established a mature technological infrastructure, liquidity support, and compliance system, allowing brokerages to quickly enter the market without repeated investments.
5. HashKey's Competitive Advantages and Prospects
1. Market Leadership
HashKey Exchange firmly holds the position of Hong Kong's largest licensed virtual asset exchange. As of November 2024, its asset management scale exceeded HKD 10 billion, with a cumulative trading volume reaching HKD 580 billion. It ranks 7th in the global exchange rankings by Coingecko, the highest-ranked licensed virtual asset exchange in Hong Kong.
2. Global Strategic Layout
HashKey has completed its licensing layout across three major global markets: Hong Kong (Asia-Pacific), Bermuda (offshore financial center), Dubai (Middle East market), and Ireland (EU market). This diversified layout lays a solid foundation for its global expansion.
3. Comprehensive Ecological Advantages
HashKey Group has built a complete ecosystem from trading, asset management, OTC, cloud services to tokenization, creating significant synergies and competitive barriers.
4. Leading Technology and Compliance
As a native compliant trading platform, HashKey has a first-mover advantage in terms of security, compliance, and technological architecture, having obtained ISO 27001 and ISO 27701 certifications.
6. Future Development Trends
Brokerages Self-Build vs. Continued Cooperation
In the long term, large brokerages may consider building their own virtual asset trading systems, but this needs to take the following factors into account:
Cost-Benefit Analysis: Building systems requires significant technological investment, talent costs, and compliance costs.
Market Scale: Only when the virtual asset business reaches sufficient scale does self-building become economical.
Regulatory Requirements: Hong Kong's strict regulatory requirements set a high threshold for self-building.
Competitive Landscape: HashKey's first-mover advantage and ecological barriers make it difficult for later entrants to surpass easily.
7. HashKey's Sustainable Advantages
HashKey aims to surpass Coinbase within five years, becoming the largest licensed exchange cluster globally. Its competitive advantages are mainly reflected in:
In-depth Focus on the Asian Market: Compared to Coinbase's focus on the US market, HashKey is more concentrated on the Asian market with great growth potential.
Compliance First-Mover Advantage: In the trend of tightening global regulation, licensed compliance has become a core competitive edge.
Ecological Synergy Effects: The comprehensive license and all-business ecological layout have formed significant competitive barriers.
Technological Innovation Capability: Continuous product innovation and technological iteration maintain market leadership.
Overall, although more brokerages obtaining virtual asset licenses increases market competition, HashKey, with its full license layout, technological advantages, compliance experience, and ecological synergy effects, is still expected to maintain its leadership in the Hong Kong virtual asset market. For investors holding HSK, HashKey's diversified advantages and global strategy provide strong support for its long-term development.
