Hong Kong’s crypto market is experiencing turbulence as licensed exchanges are looking to expand overseas amid regulatory concerns.

One of the two licensed crypto exchanges in Hong Kong, HashKey, has decided to obtain a Bermuda license to reach global investors. HashKey Group COO Livio Weng mentioned in an interview with the Financial Times that the decision to expand beyond Hong Kong was due to the limited local market and regulatory barriers blocking access to global users.

HashKey recently launched HashKey Global, a new venture catering to qualified retail investors. The platform plans to introduce futures, staking, and other financial products in the coming quarter.

Weng emphasized the need for regulatory flexibility in Hong Kong to attract more crypto-friendly businesses. Currently, Hong Kong only allows exchanges to serve clients who have passed KYC checks and hold funds in local bank accounts. Weng believes that approving more exchanges won’t address the issue, as the local market may not be able to support additional players.

On the other hand, HashKey’s competitor, OSL, recently sold a 30% stake to BGX, an unlicensed crypto group with ties to China. OSL has not made any public statements regarding the deal.

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