Interview with HashKey PRO: Cooperation with ZA Bank

As the only two currently compliant cryptocurrency exchanges in Hong Kong, HashKey PRO submitted the application form immediately when the application for the VASP license was opened. For them, the next thing to do is to wait for the license to be issued, and then open the retail business. At present, HashKey PRO is already making final preparations for its launch, including continuing to accept audits from the Big Four accounting firms, continuously optimizing the user's KYC process experience, and providing support for fiat currency deposits and withdrawals. At the beginning of its establishment, HashKey PRO carried out system design and development according to the structure of licensed exchanges, and also accumulated more experience in serving professional investors. This time, Jinse Finance interviewed HashKey PRO, what is their judgment on the future policy trend in Hong Kong? What did they do to welcome retail investors into the market?

Jinjin Finance:In order to welcome the influx of retail investors intoHashKey PRO**, will you make some preparations now? For example, what has been done in the preparation of the team and the preparation of the exchange business section. How are trade fairs for retail investors different from those for professional investors and institutions? **

HashKey PRO: The new regulations in Hong Kong allow retail users to trade. HashKey PRO, as one of the two exchanges that previously held No. 1 and No. 7 licenses, will apply for a new license under the "Anti-Money Laundering and Terrorist Financing Regulations" (Cap. The license application was submitted to the Hong Kong Securities Regulatory Commission in a short time. Follow-up will carry out systematic review and adjustment according to the requirements of the guidelines to ensure that the platform complies with the latest regulatory requirements. In addition, the final confirmation of the virtual assets that support the transaction in the first phase is required, including risk assessment and submission of relevant materials. This is to ensure that trading assets are adequately vetted and prepared prior to offering a retail presence.

Previously, HashKey PRO has accumulated rich experience in serving professional investors (PI). In terms of capital security, strict protection measures have been taken for retail investors, professional investors and institutional transactions. Customer funds are stored in isolation to ensure that they are separated from company funds, and HashKey PRO also has a complete third-party insurance protection system to provide investors with additional protection. Specifically, retail users will have more diverse needs in terms of mobile experience, platform interaction and ease of use, and the platform will also conduct more complete testing and optimization of products to ensure that retail users have a smooth transaction experience.

**Jinse Finance: What did Hashkey PRO do with regard to the previous investment in compliance? How is the process of applying for VASP license? Among the regulations on the exchange's application for licenses and compliance, which ones do you think are more difficult to implement? For an exchange that wants to apply for a compliance license to conduct compliance business in Hong Kong, what does he need to pay? **

HashKey PRO: As mentioned earlier, HashKey PRO has submitted an application to the Hong Kong Securities Regulatory Commission as required, and is making final preparations for its launch. To ensure that the trading platform meets compliance standards, HashKey PRO has taken a number of key initiatives. These include continuing to accept audits by the Big Four accounting firms, continuously optimizing the user's KYC process experience, and providing support for fiat currency deposits and withdrawals. From the perspective of product architecture, HashKey PRO has carried out system design and development according to the structure of licensed exchanges from the beginning of project establishment, that is, native compliance, rather than transformation based on non-compliant platforms. The key points include a series of in-depth protection measures for user assets, as well as a complete set of virtual asset risk control assessment and grading system, to ensure that different types of users can obtain trading services with corresponding risks. Therefore, these measures also bring Higher construction costs.

For an exchange that wants to apply for a compliance license and conduct compliance business in Hong Kong, achieving compliance requires various efforts and investments. This includes establishing legal compliance teams, investing security and technology resources, implementing fund segregation and risk management mechanisms, establishing auditing and reporting systems, and conducting compliance training and education. At the same time, it is also key to establish a good cooperative relationship and actively communicate with regulatory agencies. These inputs will help exchanges ensure compliant operations, protect user interests, and promote the healthy development of the industry.

Jinse Finance:** When will retail investors be able to trade on compliant exchanges in Hong Kong? What conditions do retail investors need to meet for KYC certification? Can only local citizens of Hong Kong use compliant exchanges in Hong Kong? **

HashKey PRO: According to the latest regulations, it is clear that retail investors can trade on licensed exchanges in Hong Kong. At present, HashKey PRO is in continuous communication with the China Securities Regulatory Commission. Once it obtains a license under the dual license arrangement and successfully obtains the exemption from the China Securities Regulatory Commission for only providing services to PI, it can start business for retail investors. For HashKey PRO, the KYC certification process is formulated in accordance with the requirements of the China Securities Regulatory Commission, including investors' understanding of the nature and risks of virtual assets, identification information, and bank account information.

HashKey PRO is currently operating in Hong Kong, but it also accepts global user registration (except for virtual currency transactions, specially designated countries or countries subject to trade and economic sanctions, etc.), provided that it meets regulatory and KYC-related requirements. In order to facilitate the deposit and withdrawal of legal currency, HashKey PRO currently supports SWIFT bank transfers from 16 countries and regions around the world, including Hong Kong, Singapore, the United Kingdom, the United States, Canada and other regions. A complete list of specific supported regions can be viewed on the official website. HashKey PRO is committed to providing more payment options, including other currencies and payment methods, to enhance the accessibility of the platform to users around the world.

** Jinse Finance: **** More exchanges will come to Hong Kong to start business. For Hashkey PRO, do you feel that the pressure of competition has become greater? How will you deal with these competitions? **

HashKey PRO: Compliance license applications for virtual asset exchanges are on the rise in Hong Kong, which has a positive impact on the industry. Investors are eager for the market to be standardized and transparent, and the licensing system provides other countries around the world with the possibility to explore the regulation of virtual asset services. A licensed trading platform can provide virtual asset investors with higher security and transparency guarantees, which has formed a first-mover advantage in the global financial market.

Although there are many platforms vying for the qualification to operate in Hong Kong, the industry is still in its infancy and there are common opportunities to broaden and deepen the market size. Every trading platform is unique, but when creating a platform, compliance and safety of client funds are the primary considerations.

Jinjin Finance:** There is a view that Hong Kong citizens have a lot of financial products to choose from, and their financial literacy is high. The market left for virtual currency transactions is not large, and the audience who are really interested in encrypted assets is Crypto assets have been owned before. So for exchanges, there will not be much increase in trading volume. What do you think of this point of view? **

HashKey PRO: As an international financial hub, Hong Kong's market is indeed relatively mature. In the past, the biggest concern of investors was asset security. Therefore, after clarifying the regulatory framework, licensed exchanges follow strict compliance standards to provide investors with higher security and transparency.

With the transformation of the virtual asset industry into mainstream assets, the development of fiat currency channels has become crucial, and it is expected to connect real financial assets and virtual assets to promote the development of the encryption industry. As a licensed exchange, HashKey PRO cooperates with fiat currency channels and establishes partnerships with mainstream banks to provide investors with more convenient access to funds. It is expected that with the implementation of Hong Kong’s regulatory policies, more banks will connect with exchanges, attract more people to participate in the cryptocurrency market, bring new capital inflows to the industry, and promote the arrival of the next round of bull market.

** Jinse Finance: **** Do you think HashKey PRO is based in Hong Kong and has completed compliance, what role will it play in its global development? **

HashKey PRO: As a licensed and compliant exchange, HashKey PRO is based in Hong Kong and is committed to developing into the global market. HashKey PRO's compliance practices and cooperation with global regulators will expand business globally and provide a stable operating foundation. HashKey PRO currently supports SWIFT bank transfers from 16 countries and regions around the world, and will also cooperate with more mainstream banks to open legal currency channels to provide global users with a convenient and secure trading environment and promote the convenience of global encrypted asset transactions. This will help build trust and transparency in the encrypted asset industry, and promote its standardization and sustainable development on a global scale.

** Jinse Finance: **** In the previous compliance process, in order to meet the requirements of anti-money laundering, what does HashKey PRO need to cooperate with the regulatory authorities? **

HashKey PRO: The HashKey PRO corporate body is continuously audited by the Big Four accounting firms. In the process of compliance, in order to meet the requirements of anti-money laundering, the platform needs to cooperate with the regulatory authorities to carry out a series of operations. First, HashKey PRO submitted a license application to be regulated by the Hong Kong Securities Regulatory Commission. This is an important step in ensuring compliant operations. Secondly, the platform was designed and developed in accordance with relevant regulations, focusing on the protection of user assets and anti-money laundering requirements. In addition, it is necessary to actively respond to the virtual asset trading platform guidelines issued by the Hong Kong Securities Regulatory Commission, and further adjust and review the platform to ensure compliance with the latest regulatory requirements. The platform has also conducted asset reviews, risk assessments, and submitted relevant materials to ensure sufficient review and preparation of trading assets. HashKey PRO is committed to providing investors with a safe and compliant trading environment, and works closely with regulatory authorities to ensure that operations comply with regulatory requirements.

Jinse Finance:** In terms of fiat currency deposits, what kind of institution will HashKey PRO choose to cooperate with after the VASP license is applied for? How will retail investors complete deposits and withdrawals in the exchange? **

HashKey PRO: HashKey PRO is committed to providing users with safe and compliant legal currency deposit and withdrawal services, and continues to expand partnerships to meet the diverse needs of users. At present, it has cooperated with settlement banks such as ZA Bank and Bank of Communications (Hong Kong) to provide users with convenient fiat currency deposit and withdrawal services. In the future, we will further expand the fiat currency deposit channels, establish partnerships with more local and international financial institutions, and cooperate with regulatory licensed institutions to meet the growing needs of users.

Under the premise of maintaining compliance and security, HashKey PRO provides users with convenient legal currency deposit and withdrawal channels. By supporting SWIFT transfers, users can directly transfer USD to HashKey PRO's legal currency wallet. Currently, HashKey PRO has supported bank transfers from 16 countries and regions around the world, and will continue to expand its coverage to provide a wider range of services.

** Jinse Finance: **** What do you think of the impact of Hong Kong’s regulatory policies and various measures to embrace Web3 on the development of Web3? And what is the impact on Hong Kong? **

HashKey PRO: Hong Kong has always been an international financial center, and its positive regulatory framework provides a stable environment for the virtual asset industry. This provides more opportunities for innovative enterprises and investors, and promotes the development of Web3 technology and applications.

Hong Kong’s regulatory policies and moves to embrace Web3 have brought many benefits to the virtual asset industry. First, a clear regulatory framework and compliance requirements have improved market transparency and investor confidence, attracting more traditional financial institutions and institutional investors to participate. This brings more capital and expertise to the industry, driving the growth and maturity of the market.

Second, Hong Kong's move to embrace Web3 provides support and convenience for innovative companies, encouraging them to develop and land in Hong Kong. This provides a better environment for the innovation of Web3 technology and applications, accelerates the promotion and application of digital assets and blockchain technology, and contributes to the digital transformation of the economy.

Hong Kong's regulatory policies and initiatives to embrace Web3 have played a positive role in promoting the development of Web3. This provides support and guidance for the healthy growth of the market, promotes the development of the digital economy, and at the same time adds new vitality to Hong Kong's position on the global financial stage.

**Jinjin Finance: ****Looking at the path of encryption regulation in the United States, do you think that the current United States will be the future of Hong Kong? Is there any concern that some future regulatory policies may be detrimental to the development of the industry? **

HashKey PRO: Recently, although the law enforcement actions in the United States have increased intensively, the market supervision is relatively loose, and there are no clear regulations and standards, while Hong Kong pays more attention to strict compliance requirements and maintains close communication with regulatory agencies. Hong Kong has its own legal and regulatory framework, and has always paid attention to the compliance and stability of the financial market. Hong Kong's licensing initiative can provide investors with more reliable and compliant investment channels, which is also one of the development directions of the Asian market.

Changes in regulatory policies will have certain impacts and challenges on the industry. In the future, some new regulatory policies will also be introduced, and the specific impact of these policies remains to be seen. As an international financial center, Hong Kong will continue to uphold an open and innovative attitude, and take into account the needs of the industry and market stability when formulating regulatory policies.