Hong Kong-based HashKey Exchange announced a major change in its deposit policy on December 21. The exchange, which serves institutional and retail investors, stated it would only accept cryptocurrency deposits exceeding 8,000HKD (approximately $1,024) from Binance.
This decision aligns with the latest regulatory guidelines the Hong Kong Securities and Futures Commission (SFC) set. The exchange emphasized its commitment to regulatory compliance as the driving force behind this strategic shift.
Details of the New Deposit Policy
Under the new rules, deposits larger than 8,000HKD will be exclusively accepted from Binance, a leading global cryptocurrency exchange. This policy directly responds to the SFC’s regulations, particularly the Travel Rule, which requires enhanced scrutiny and documentation for larger transactions.
HashKey Exchange clarified that deposits from other third-party exchanges exceeding this threshold would not be accepted. However, it is important to note that smaller deposits below the 8,000HKD mark will still be permissible from a list of 24 designated cryptocurrency exchanges.
Starting January 1, 2024, HashKey Exchange will accept smaller deposits from established platforms, including Coinbase, Kraken, Bitfinex, and Gemini. Users making their initial deposit from these third-party exchanges must provide proof of the source of funds, adhering to the exchange’s stringent anti-money laundering (AML) and know-your-customer (KYC) policies. Currently, the exchange supports retail deposits in two major cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).
Impact and Positioning of HashKey Exchange
Launched in November, HashKey Exchange has been positioning itself as a compliant and secure trading platform in the rapidly evolving Hong Kong cryptocurrency market. By aligning with the SFC’s regulatory framework, HashKey Exchange demonstrates its commitment to legal compliance and the safety of its users. This move also signifies the exchange’s proactive approach to adapting to regulatory changes in the dynamic world of digital assets.
For investors and users of HashKey Exchange, this change heralds a new era of compliance-focused operations. While it imposes certain restrictions, particularly on larger deposits from a wide range of third-party exchanges, it also assures regulatory adherence and operational transparency.
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