May 23, 2024
HashKey Emulates Coinbase with Launch of Global Exchange in Bermuda
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HashKey Emulates Coinbase with Launch of Global Exchange in Bermuda

In a strategic move to expand its presence in the global cryptocurrency market, HashKey Group has announced the launch of HashKey Global, a crypto exchange headquartered in Bermuda.

This development comes shortly after rival Coinbase obtained a Bermuda license for its international exchange, prompting HashKey to explore regulatory-friendly jurisdictions for its expansion plans.

Regulatory Advantage: Choosing Bermuda

HashKey Global’s managing director, Ben El-Baz, highlighted Bermuda’s regulatory framework as a key factor in the decision-making process.

El-Baz emphasized that Bermuda offered a favourable environment for expansion due to its robust regulatory regime, which aligns with HashKey’s commitment to compliance and safety standards.

El-Baz speaking on Bloomberg’s The China Show. Source: Bloomberg

Filling the Void: Addressing User Concerns

Reflecting on recent market dynamics, El-Baz noted a growing awareness among exchange users regarding counterparty risk, particularly following the collapse of FTX in 2022.

HashKey Global aims to capitalize on this shift by combining the user experience and product offerings of platforms like Binance with the regulatory oversight of Coinbase.

El-Baz outlined HashKey Global’s long-term vision of becoming the largest globally compliant exchange within the next five years. The exchange aims to surpass competitors’ volumes, including Coinbase International, which reported significant derivatives trading activity.

Geographical Restrictions: Target Markets

Unlike its Hong Kong-based counterpart, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions.

This strategic decision aligns with the exchange’s focus on regulatory compliance and risk mitigation.

In January, HashKey Group achieved unicorn status after raising nearly $100 million in a Series A funding round, underscoring investor confidence in its growth prospects.

The funds raised will support various business arms, including asset management, blockchain services, and Web3 incubation initiatives.

Comprehensive Offerings: Features and Services

HashKey Global plans to offer spot and futures trading, staking services, a project launchpad, and liquidity provisions from day one.

The exchange aims to ensure deep market liquidity by partnering with reputable liquidity providers and market makers.

While specific details about the investment required for launching HashKey Global remain undisclosed, El-Baz emphasized that the exchange is adequately capitalized.

Bermuda’s regulatory framework ensures stringent capitalization requirements for licensed institutions, providing confidence in HashKey Global’s financial stability.

Crypto-Only Platform: Initial Offerings

At launch, HashKey Global will exclusively offer cryptocurrency trading, with 20 cryptocurrencies available for trading in Tether pairs.

Notable offerings include Bitcoin, Ether, USD Coin, and Dogecoin, catering to a diverse range of investor preferences.

As HashKey Global embarks on its journey to establish itself as a leading player in the global crypto exchange arena, its focus on regulatory compliance, market dominance, and user-centric services will be closely watched by industry stakeholders.

Image: wallpaperflare.com

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