HashKey promotes Launchpool international station with "Hong Kong compliance" and launches new coin ZKJ

HashKey Exchange, one of the only two compliant exchanges in Hong Kong recognized by the Securities and Futures Commission (SFC), has become a rare approved cryptocurrency exchange in Hong Kong. With the withdrawal of license applications by exchanges such as OKX, the expectation for a "Crypto-Friendly Hong Kong" has shifted towards HashKey and OSL to dominate the market.

The carnival comes to a close! SFC of Hong Kong: Will begin to hold unregistered exchanges accountable, licensing is not a guarantee.

Restrictions on Trading Business for Compliant Operators in Hong Kong

However, licensed operators in Hong Kong also face limitations. Currently in the Hong Kong framework:

1. Stablecoin trading pairs on exchanges are not open, and providing financial products is prohibited
2. Stablecoin issuance is still in the financial sandbox stage
3. There are restrictions on the types of coins that can be listed
4. Strict consumer protection regulations such as asset segregation and insurance

Hong Kong's cryptocurrency regulation came into effect on June 1: Exchanges bear heavy responsibility to protect retail investors and are temporarily not allowed to trade stablecoins

This also prevents compliant operators from operating a diverse range of products and currencies like offshore exchanges, impacting their ability to generate profits from global users.

HashKey's "Compliant in Hong Kong" International Platform Promotion

Looking at the operational status of HashKey Exchange, it is divided into the Hong Kong platform and the international platform. Recently, the HashKey Exchange international platform launched a Launchpool event – Polyhedra Network ZKJ, promoting itself as a licensed exchange.

In reality, while the Hong Kong platform holds a license, the international platform does not meet Hong Kong's regulatory requirements; the two should be viewed with different degrees of risk. The international platform uses "licensed compliance" to describe its compliance, which can be seen as a form of borderline promotion, leveraging the Hong Kong license to gain customer trust. Such promotional tactics that borrow the concept of "compliance" should be viewed with a neutral attitude.

Most Global Exchanges' Compliance is Primarily Self-Regulation

Due to varying laws related to exchanges across countries and insufficient comprehensive regulations, in the rapid business development of exchanges, there are hardly any exchanges with a diverse range of services - spot trading + futures + wealth management - that can be considered compliant.

Countries with a licensing system such as Japan, Singapore, and Hong Kong have strict business regulations, mostly limited to spot trading markets with many restrictions and not open to users outside their jurisdictions. Additionally, some offshore exchanges selectively apply for various financial licenses worldwide, such as the U.S. MSB, as a form of compliance proof, but they cannot be audited by regulatory authorities, let alone protect investors.

Therefore, we have seen international exchanges like Binance and FTX attempting to establish physical compliance entities in individual regions and segregating overseas users. The aim is mostly to demonstrate a proactive compliance attitude while sacrificing commercial interests and incurring significant costs.

This time, HashKey Exchange taking the opposite path of expanding its international platform from Hong Kong compliance may also be the route planned by many regional compliant exchanges.

However, for international users, understanding regional compliance is crucial, and this concept cannot be extended to their international platforms.

With global exchanges operating in immature regulatory environments, most rely on self-regulation to protect international users under a diverse product offering.