Why 90% of brokerages use HashKey? 》 (This article is AI's answer) 1. What are the licenses in Hong Kong? Hong Kong's virtual asset regulatory framework is based on the principle of the same business, the same risks and the same supervision, and the following types of licenses are mainly required to engage in virtual asset-related business in Hong Kong: Licences under the Securities and Futures Ordinance (SFO): No. 1 (Securities Trading): It can provide virtual asset trading and distribution services No. 4 (Advising on Securities): Providing advisory services on virtual asset investment Type 7 (providing automated trading services): operating a trading platform in conjunction with a VASP license Type 9 (Asset Management): Portfolios with more than 10% virtual assets under management Licences under the Anti-Money Laundering Ordinance (AMLO): VASP License (Virtual Asset Service Provider): Operates a virtual asset trading platform and provides non-security token trading services23 2. HashKey Group's license layout The full license coverage of virtual asset business has been realized: HashKey Exchange： Type 1 Licence (Dealing in Securities) Type 7 Licence (Provision of Automated Trading Services) VASP License (Operating Virtual Asset Trading Platform) HashKey Capital： Type 1 Licence (Dealing in Securities) Type 4 Licence (Investment Advisory) Type 9 Licence (Asset Management) HBS (Hong Kong) Limited： Type 1 Licence (Dealing in Securities) Type 4 Licence (Investment Advisory) This fully-licensed layout enables HashKey to provide a full range of virtual asset services from trading, custody, asset management to investment advisory. 3. The status quo of virtual asset licenses of securities firms As of the end of June 2025, a number of securities firms in Hong Kong have been upgraded for virtual asset-related licenses. Guotai Junan International has become the first Chinese-funded brokerage firm to obtain a virtual asset trading license, which can directly provide customers with virtual asset trading services such as Bitcoin and Ether. In addition, a number of local brokerages in Hong Kong, such as Victory Securities and Eddid Securities, have also completed the upgrade of their Type 1 licenses. In terms of online brokerages, Futu Securities' Cheetah Trading and Tiger Brokers' YAX have also obtained VASP licenses. 4. Why brokerages still rely on HashKey services Despite the virtual asset trading licenses obtained by brokers, most still choose to use HashKey's services for the following reasons: 1. Business model differences Brokerages are primarily licensed for "distribution" and are not operated by proprietary exchanges. Instead of building their own trading platforms, they provide clients with access to virtual asset trading by setting up omnibus accounts on licensed exchanges. 2. Advantages of HashKey's Omnibus service HashKey Exchange's Omnibus Integrated Account service has reached 90% of licensed brokerages in Hong Kong, providing a package of services such as virtual asset trading, custody and delivery to more than 30 institutions1415. The cumulative trading volume of the service has exceeded HK$30 billion, and the trading volume in the past six months has increased nearly fivefold compared with the previous cycle. 3. Technical and compliance cost considerations Building your own virtual asset trading system requires huge technical investment and compliance costs. As the largest licensed virtual asset exchange in Hong Kong17, HashKey has established a mature technology infrastructure, liquidity support and compliance system, allowing brokerages to quickly enter the market without having to re-invest. 5. HashKey's competitive advantages and prospects 1. Market leadership HashKey Exchange is the largest licensed virtual asset exchange in Hong Kong, with AUM exceeding HK$10 billion and cumulative trading volume reaching HK$580 billion as of November 2024. Ranked 7th in the Coingecko Global Exchange Rankings, it is the highest-ranked licensed virtual asset exchange in Hong Kong. 2. Global strategic layout HashKey has completed its licensing in three major global markets: Hong Kong (Asia Pacific market), Bermuda (offshore financial center), Dubai (Middle East market) and Ireland (EU market). This diversification has laid a solid foundation for its global expansion. 3. Comprehensive ecological advantages HashKey Group has built a complete ecosystem from trading, asset management, OTC, cloud services to tokenization, forming significant synergies and competitive barriers. 4. Leading technology and compliance As a natively compliant trading platform, HashKey has a first-mover advantage in security, compliance, and technical architecture, having achieved ISO 27001 and ISO 27701 certifications. Sixth, the future development trend Brokerage self-built vs continuous cooperation In the long term, large brokerages may consider building their own virtual asset trading systems, but this needs to consider the following factors: Cost-benefit analysis: Self-built systems require huge investment in technology, talent, and compliance Market size: Self-construction is only economical when the virtual asset business reaches a sufficient scale Regulatory requirements: Hong Kong's strict regulatory requirements make the threshold for self-construction very high Competitive dynamics: HashKey's first-mover advantage and ecological barriers make it difficult for latecomers to easily surpass 7. HashKey's sustainable advantages HashKey expects to surpass Coinbase as the world's largest cluster of licensed exchanges within five years. Its competitive advantages are mainly reflected in: Deepening the Asian market: Compared to Coinbase, which is mainly based on the US market, HashKey is more focused on the Asian market with huge growth potential First-mover advantage in compliance: Under the trend of stricter global regulation, licensed compliance has become a core competitiveness Ecological synergy: The ecological layout of all licenses and all businesses has formed significant competitive barriers Technological innovation capabilities: continuous product innovation and technology iteration to maintain a leading position in the market Overall, while more brokerages are gaining virtual asset licenses to increase market competition, HashKey is still expected to maintain its leading position in Hong Kong's virtual asset market with its full license layout, technical advantages, compliance experience and ecosystem synergies. For investors who hold HSK, HashKey's diversification and globalization strategy provide strong support for their long-term development.