• HashKey, a licensed crypto exchange in Hong Kong, is set to allow individual and enterprise market makers to provide liquidity, aiming to deepen market engagement.

• The eligibility criteria include a minimum monthly crypto trading volume of $5 million.

• This move reflects HashKey’s strategic response to evolving market dynamics, aligning with the broader trend of Hong Kong-regulated exchanges expanding services and forming strategic partnerships in the crypto space.

HashKey, one of the pioneering cryptocurrency exchanges to receive licensing in Hong Kong, has announced plans to open its doors to individual and enterprise market makers interested in providing liquidity on the exchange. The development, revealed in a statement on December 5, outlines the eligibility criteria and process for entities seeking to engage as market makers on the platform.

Individuals and entities interested in becoming market makers on HashKey must meet specific requirements, including a monthly crypto trading volume of at least $5 million on the exchange.

After submitting their business plans, successful applicants will undergo a review process and, if approved, will be invited to formalize their engagement by signing a contract with its due diligence team. The official commencement of trading activities for approved market makers is December 28.

Hashkey Exchange Commission rate

HashKey has established a commission structure for market makers based on monthly rankings or trading volumes. Participants in this program will receive a commission ranging from 0.005% to 0.015% of the transaction value.

Notably, the highest tier of commission revenue, at 0.015%, is reserved for users and entities demonstrating a substantial trading volume of at least $100 million per month. It’s important to highlight that all market makers on HashKey will be exempt from paying commission fees on their trades, providing an added incentive for participation.

This move by HashKey aligns with the broader trend observed in Hong Kong, where regulated crypto exchanges are expanding their service offerings and forming strategic partnerships. OSL, another Hong Kong-licensed exchange, recently partnered with Interactive Brokers on November 28. This collaboration enables Hong Kong clients to purchase Bitcoin and Ether seamlessly using Interactive Brokers’ investment accounts.

Moreover, on November 30, OSL onboarded Victory Securities, marking a significant milestone as the first regulated broker in Hong Kong to obtain approval for virtual asset dealings, facilitating crypto trading services on OSL’s platform. OSL also secured a noteworthy $90 million investment from blockchain entity BGX in November, highlighting increased investor confidence in crypto.

HashKey has been expanding its altcoin offerings in parallel, although access remains limited to accredited investors meeting a $1 million portfolio requirement.

On November 16, the exchange significantly enhanced user and enterprise security by launching comprehensive insurance coverage for assets stored within its digital wallets. This initiative underscores its commitment to providing its users with a secure and robust trading environment.

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As the crypto landscape continues to evolve, its decision to facilitate market-maker participation reflects a strategic effort to enhance liquidity and deepen its market engagement. The commission structure and the exemption from trading fees for market makers create a mutually beneficial framework for the exchange and participating entities.

The expansion of services by Hong Kong-regulated exchanges, including partnerships and investments, signals the region’s growing acceptance and integration of digital assets within the traditional financial ecosystem.

Its decision to open its platform to market makers is a strategic business move and a response to the evolving dynamics of the cryptocurrency market. By allowing external entities to act as liquidity providers, HashKey positions itself at the forefront of fostering a more dynamic and liquid trading environment. This initiative aligns with the broader industry goal of creating decentralized and efficient markets where various participants contribute to the overall liquidity and stability of the platform.

The Hong Kong regulatory landscape has been pivotal in shaping the direction of crypto exchanges in the region. Since the first licenses were granted in August, exchanges like HashKey have seized the opportunity to expand their offerings and collaborate with traditional financial institutions.

The move to include market makers further highlights the adaptability of these platforms in responding to market demands and regulatory expectations. As the crypto space matures, its innovative approach addresses the immediate need for enhanced liquidity and positions the exchange as a critical player in the ongoing convergence of traditional finance and the digital asset ecosystem.

In conclusion, its move to welcome individual and enterprise market makers adds a new dimension to the crypto trading landscape in Hong Kong. The exchange aims to foster increased market activity and participation by providing a platform for liquidity providers.

As regulatory frameworks continue to develop, the collaboration between crypto exchanges and traditional financial entities, as exemplified by partnerships and investments, underscores the industry’s maturation and acceptance on a global scale. Crypto investments have grown in popularity and HashKey’s commitment to security and expansion reflects broader trends in the crypto space, where exchanges continually innovate to meet the evolving needs of users and investors alike.