HashKey Adapts to Travel Rule Amid New Domestic Legislations

Hong Kong’s HashKey exchange has officially integrated new rules to align with the Travel Rule from the start of this year.

The Hong Kong Travel Rule refers to a set of regulatory requirements for virtual asset service providers (VASPs), including crypto exchanges. This rule is in line with the international standards set by the Financial Action Task Force (FATF).

HashKey’s change comes as domestic exchanges have to focus on compliance in Hong Kong amid a series of legislative proposals.

HashKey changes rules for compliance

The change will significantly adjust the platform’s deposit and withdrawal processes, particularly in its interactions with third-party exchanges. HashKey initially planned to include 24 exchanges in this update, but has limited the integration to Binance as per the release last month.

Hong Kong’s compliance exchange Hashkey has adjusted its rules and will officially integrate the Travel Rule from January 1, 2024. Currently, it only supports deposits and withdrawals from Binance. In December 2023, Hashkey announced a list covering 24 exchanges. But now it’s…

— Wu Blockchain (@WuBlockchain) January 6, 2024

Therefore, HashKey has only been supporting deposits of virtual assets from Binance Global since January 1. However, deposits from exchanges other than Binance will not be supported, although HashKey intends to gradually expand this list.

Withdrawal processes are also undergoing changes. This update maintains the current whitelisting process, but invalidates previously approved withdrawals to exchanges other than Binance. Importantly, addresses on Binance that were whitelisted earlier do not require revalidation.

HashKey Exchange emphasizes the importance of ensuring that all third-party exchange deposit and withdrawal arrangements are compliant with the new regulations after January 1, 2024.

Hong Kong makes series of legislative proposals

Simultaneously, Hong Kong is introducing a new regulation for stablecoins, which includes a mandatory licensing system.The Hong Kong Monetary Authority and the Financial Services and Treasury Bureau have jointly proposed the legislation to regulate the growing stablecoin market in the region. This initiative seeks to create a comprehensive regulatory framework.

The region is also making it easier for retail investors to engage in crypto ETFs. While there is a worldwide trend towards crypto spot ETFs, Hong Kong is welcoming this product but maintaining stringent regulatory and compliance standards.

Also Read: Hong Kong Unveils Ambitious Regulatory Framework For Stablecoins

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Shraddha’s professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.