Hong Kong Crypto Licensing Yet to Result in Job Surge

Hong Kong’s HashKey Adds AVAX TradingHashKey Hong Kong, the Chinese autonomous territory’s first licensed retail crypto exchange, has unveiled an addition to its platform with the launch of Avalanche (AVAX) trading.According to an announcement published to its website on Wednesday, HashKey has listed Avalanche on Thursday with the caveat that access to AVAX trading will be reserved for professional investors, as defined by Hong Kong’s Securities & Futures Commission (SFC).Photo by Wance Paleri on UnsplashAccessible to professional investorsTo meet the criteria as a professional investor in Hong Kong, individuals must possess an investment portfolio valued at a minimum of 8 million Hong Kong dollars, roughly equivalent to $1 million. This decision sets AVAX apart from other widely traded cryptocurrencies, such as Bitcoin and Ether, which remain accessible to retail investors in Hong Kong. While Tether (USDT) enjoys retail status, the majority of altcoins on HashKey will remain the preserve of professional investors.This move is a direct result of the SFC’s proactive stance on regulating the rapidly expanding crypto market in Hong Kong. Since the introduction of regulated retail crypto trading in the Chinese autonomous territory in August, the SFC has imposed rigorous requirements on exchanges. HashKey mandates users to deposit a minimum of 10,000 Hong Kong dollars or $1,500 into their exchange accounts as part of the Know Your Customer (KYC) verification process.Low trading volumeAmid these regulatory challenges, HashKey Hong Kong currently reports a 24-hour trading volume of approximately $5.3 million, significantly lower than its global peers. This lower trading volume suggests that stringent regulations may be affecting the exchange’s ability to attract retail investors effectively.The path to regulatory compliance in Hong Kong has been anything but smooth for crypto exchanges. Reports indicate that these platforms have collectively invested over $25 million in establishing the requisite infrastructure for obtaining a Hong Kong Virtual Asset Service Provider (VASP) license. It was reported earlier this year that crypto firms are forking out between $2.55 million and $25.5 million in order to secure a VASP trading license.Despite the challenges, HashKey is looking at various avenues in bringing its offering forward. Earlier this month the firm signed a memorandum of understanding (MOU) with insurer OneDegree. That collaboration could be significant as it should lead to the assets of HashKey users being protected and insured on the platform. That would solve a major issue for participants in the crypto space amid the backdrop of ongoing platform failures and hacks.JPEX collapseEven as regulatory efforts intensify, the crypto industry in Hong Kong has not been impervious to bad actors. The recent collapse of the JPEX crypto exchange earlier this month serves as a stark reminder of the ongoing risks associated with the industry. Described as the largest financial fraud in Hong Kong’s history, JPEX faced allegations of embezzling over $178 million of investors’ funds. Notably, JPEX was operating without SFC registration at the time of the alleged embezzlement.In response to such incidents, the SFC has taken proactive measures by publishing a warning list of crypto exchanges considered non-compliant within the Chinese autonomous territory.

XPLA joins hands with Carbonated to spearhead mobile Web3 gaming eraXPLA, the layer 1 blockchain mainnet operated by South Korean gaming corporation Com2us Group, said Tuesday (local time) that it has entered into a strategic partnership with game developer Carbonated. Under the new deal, Carbonated plans to onboard its upcoming blockbuster games exclusively onto XPLA, pioneering a new landscape of global Web3 gaming.Photo by Jonas Leupe on UnsplashXPLA expands furtherThe XPLA mainnet hosts a diverse lineup of participants like Oasys, Animoca Brands, YGG, Blockdaemon, Cosmostation and LayerZero. These companies have been continuously onboarding their Web3 games such as Summoners War: Chronicles, Minigame Party, Ace Fishing: Crew, Idle Ninja Online and The Walking Dead: All-Stars. With Carbonated joining as the newest contributor, its portfolio has been further diversified.“Carbonated is a studio with world-class development capabilities,” said Paul Kim, the leader of the XPLA team. “Its upcoming project, with its Web3-optimized gameplay and global appeal, will significantly contribute to the expansion of the XPLA ecosystem.”Harnessing cutting-edge tech for Web3 game developmentEstablished in 2015, Carbonated boasts a team of developers and industry veterans from major gaming companies such as Electronic Arts, Zynga and Blizzard who focus on creating immersive mobile games that are optimized for the Web3 market using artificial intelligence (AI) technology and their own live-ops tech stack called Carbyne. Recognized for this innovative approach to game development, the company received Series A funding worth a total of $8.5 million from several investors like Andreessen Horowitz (a16z) and Golden Ventures. Its newest game, notable for its high-quality graphics and compelling storyline, is scheduled for global release in the first half of next year.

Korbit Passes Post-Audit for ISMS-P and ISO CertificationsSouth Korean crypto exchange Korbit announced on Wednesday that it has successfully passed a post-audit to maintain its Personal Information and Information Security Management System (ISMS-P) certification and four different International Organization for Standardization (ISO) certifications — ISO 27001, ISO 27017, ISO 27018, and ISO27701.“By maintaining our ISMS-P and ISO certifications this year, we were able to reaffirm the stability and trustworthiness of Korbit’s personal information protection capabilities and security management system,” said Oh Se-jin, CEO of Korbit.Photo by FLY:D on UnsplashRigorous criteriaThe ISMS-P is a security management system jointly operated by the Ministry of Science and ICT and the Personal Information Protection Commission, representing the highest level of security management in Korea. It combines 80 requirements for Information Security Management System (ISMS) certification and 22 requirements for Personal Information Management System (PIMS) certification, totaling 102 requirements that must be met. Once obtained, certification is valid for three years, and annual post-audits are required to maintain its validity.Korbit first obtained ISMS-P certification in September of 2021 and has once again passed this year’s post-audit that was conducted last Wednesday.Meeting international standardsIn addition, the exchange had previously passed post-audits for four ISO certifications related to information protection and personal information management systems earlier in June. This includes ISO 27001 for information security management systems, ISO 27017 for information security controls on cloud services, ISO 27018 for protection of personally identifiable information (PII) in public clouds, and ISO 27701 for privacy information management systems.This achievement demonstrates Korbit’s commitment to reliability and security when operating and managing exchange services.“As a crypto exchange, we will continually focus on strict security management to ensure the protection of customer information and assets,” said CEO Oh.