Crypto service provider HashKey Group has made its foray into the global crypto exchange market with the launch of HashKey Global, based in Bermuda. The decision to establish the exchange in Bermuda came after rival Coinbase obtained a license to operate its international exchange there. HashKey Global’s managing director, Ben El-Baz, stated that the regulatory regime in Bermuda was suitable and favorable for expansion. El-Baz also mentioned the collapse of FTX in 2022, which made users more aware of counterparty risks. He saw an opportunity for HashKey Global to combine the user experience of Binance with the regulatory safety of Coinbase.
The long-term goal of HashKey Global is to become the largest globally compliant exchange within the next five years. El-Baz aims to surpass the trading volume of competitors, particularly Coinbase International, which reported a 24-hour derivatives volume of $539.4 million. HashKey Global will not serve customers in Hong Kong, China, the United States, and other regions. In contrast, its Hong Kong-based counterpart was the first to obtain a license to operate in the region.
In its initial stages, HashKey Global plans to offer spot and futures trading, staking services, a project launchpad, and ensure sufficient market liquidity through liquidity providers and market makers. The exchange believes it is adequately capitalized, although the exact investment amount is undisclosed. Bermuda’s strong awareness of capitalization requirements for licensed institutions played a role in HashKey Global’s decision.
At launch, the exchange will only support cryptocurrencies, including Bitcoin, Ether, USD Coin, and Dogecoin. It currently offers trading in pairs with Tether (USDT). Over the next six months, HashKey Global will continue to expand and enhance its offerings as it aims to become a prominent player in the global crypto exchange market.
Market liquidity is key, and it’s great to see HashKey Global prioritizing it.
Capitalization requirements are essential for a trustworthy institution. Kudos to HashKey Global for recognizing their importance.
Another exchange entering the market after FTX’s collapse? Are they sure that’s a good idea?