Milestone in Cryptocurrency Trading | Hong Kong's First Retail-Oriented Platform Approved

With the announcement in August 2023 that HashKey Exchange has received a virtual asset trading license issued by Hong Kong, the retail trading of tokens in Hong Kong has been legalized. Additionally, HashKey stated that it has partnered with Standard Chartered Bank to provide fiat currency deposit and withdrawal services. This is a milestone for both Hong Kong and the entire industry.

One persistent issue in the cryptocurrency world is that all traditional banks do not support cryptocurrency trading! What do banks fear the most? Not inactive accounts, not low transaction volumes, but money laundering. And cryptocurrency happens to be a paradise for money laundering. The funds in the cryptocurrency world are substantial and move in and out quickly. Due to the regulatory environment lagging far behind the development speed of this new phenomenon, the cryptocurrency space has remained in a state of wild growth!

The fundamental problem in the cryptocurrency sector has always been regulation, not the violations themselves. If a series of transactions in the cryptocurrency world were under transparent regulation, many issues would be readily resolved. Hong Kong is leading the world in this regard. The highly anticipated new regulations for cryptocurrency exchanges in Hong Kong, titled "Guidelines for Operators of Virtual Asset Trading Platforms," have officially come into effect, consisting of a whopping 200,000 words!

The bug of the Hong Kong dollar has thus been born! It can circulate freely with the US dollar while also being pegged to the strong Chinese yuan. When depositing, one can enjoy the benefits of US dollar interest rate hikes, and when doing business, one can benefit from the Chinese yuan interest rate cuts. With support from the world's second-largest economy, Hong Kong has also become a consumption paradise for many wealthy individuals!

But is this really suitable for retail investors? Let’s do the math: if you exchange your money at an offline exchange shop for Hong Kong dollars, you might incur a loss of about 2%; if you deposit Hong Kong dollars in a bank to exchange for US dollars, you might also incur a loss of about 2%. Is that all? Don’t forget, you still have to leave your full identity information with the relevant institutions. Even if everything goes smoothly, how do you plan to bring the money back to the mainland? Exchanging back to your home country? There is an annual limit of only $50,000, and you must provide various proofs.

So why have I been recommending #biyapay ? It’s something that can be fully managed online, and the entire cash-out process complies with regulatory requirements. You can simply search for it in the Google Store; the withdrawal reaches you on the same day, which is very convenient. The best part is that there will be no transaction records left in domestic banks. This means no one can intervene; your money is truly yours, dancing back and forth on the sharp edge of the crackdown, rejecting all limits, non-counter, freezing, and stopping payments.