Gate.HK launched as crypto plaftorm attempts to secure SFC license in Hong Kong
Gate Group has launched Gate.HK, a Hong Kong-based virtual asset trading platform offering virtual asset deposits and withdrawals, as well as spot trading on various virtual assets such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
The group of companies is mostly known for its global crypto exchange, Gate.io. In 2022, Gate Group subsidiary Hippo Financial Services Limited obtained the Trust and Corporate Service Provider (TCSP) license in the jurisdiction.
The launch of Gate.HK follows the firm’s preparation for its application for licensing with the Securities and Futures Commission (SFC) in Hong Kong.
Gate.HK to cater to retail and professional customers
Gate.HK aims to introduce a wider array of trading services catering to all users including retail users and professional investors. In the future, the new platform will roll out various other services to provide a more extensive range of trading choices, tailoring each new product and service to meet the needs of users and the regulatory requirements in Hong Kong.
In April, the firm announced Gate.UK applied with the Securities and Futures Commission (SFC) under the anti-money laundering laws to trade non-security tokens.
Additionally, Gate.HK wants to apply for Licenses under the Securities and Futures Ordinance for Type 1 (Securities Dealing) and Type 7 (Automated Trading Services Provision) regulated activities to facilitate security token trading.
The authorizations would allow Gate.io to establish relationships with traditional financial institutions like banks, which enables its customers to convert their cryptocurrency to fiat money or vice versa on the platform.
Hong Kong is one of the most progressive and open jurisdictions for cryptocurrency regulation in Asia. The government has taken a cautious but supportive approach to the development of cryptocurrency and blockchain technology while also protecting consumers.
Gate.io cited the nation’s crypto-friendly policies as Hong Kong’s government is pushing to attract digital asset businesses, which would increase retail investors’ access to top cryptocurrencies and crypto exchange-traded funds.
Under the current framework, virtual assets are classified as “securities” or “commodities” depending on their specific characteristics and are subject to the same regulatory requirements as traditional securities and commodities. This means that cryptocurrency exchanges that operate in Hong Kong are required to comply with a range of regulations relating to customer due diligence, anti-money laundering (AML), and other consumer protection measures.
