HashKey Exchange to Allow Market Makers
HashKey, one of the first crypto exchanges licensed in Hong Kong, will soon open its doors to individual and enterprise market makers who can provide liquidity on the exchange. To be eligible, applicants must trade at least $5 million worth of cryptocurrencies per month on the exchange and have their business plans reviewed. If approved, they can sign a contract with the exchange’s due diligence team and start trading on December 28.
Commission Structure for Market Makers
Depending on their monthly rankings or trading volume, market makers will receive between 0.005% and 0.015% of transaction value as commission. However, they must demonstrate a trading volume of at least $100 million per month to enjoy the highest tier of commission revenue. All market makers are exempt from paying commission fees on trades.
Expanding Service Offerings in Hong Kong
Hong Kong-regulated exchanges have been expanding their offerings and partnerships since receiving licenses in August. OSL, another licensed exchange, partnered with Interactive Brokers to allow Hong Kong clients to purchase Bitcoin (BTC) and Ether (ETH) using their investment accounts. They also onboarded Victory Securities, the first regulated broker in Hong Kong for virtual asset dealings. HashKey has been expanding its altcoin offerings but only accredited investors meeting a $1-million portfolio requirement can access them.
Hot Take: HashKey Exchange Embraces Market Makers
HashKey Exchange’s decision to allow individual and enterprise market makers is a significant step toward enhancing liquidity on the platform. By incentivizing high-volume traders through a commission structure, HashKey aims to attract more activity and improve overall trading conditions. This move aligns with the trend among Hong Kong-regulated exchanges to expand service offerings and forge partnerships to cater to the growing demand for cryptocurrencies. With the increasing adoption of digital assets, initiatives like these contribute to the continued growth and maturation of the crypto industry.
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