HashKey has entered into a Memorandum of Understanding (MOU) with fintech firm OneDegree to provide comprehensive insurance coverage for its exchange wallets. This move represents a pivotal moment for HashKey, as it seeks to strengthen the financial and technical infrastructure while enhancing its services for customers within Hong Kong’s vibrant digital asset ecosystem.
Protection for Hot Wallets and Cold Storage
The insurance policy, a collaborative effort between HashKey and OneDegree, will extend coverage to both hot wallets and cold storage addresses. This ensures that users’ digital assets, whether actively traded or securely stored, are safeguarded against unforeseen risks and challenges in the cryptocurrency landscape.
The Vision Behind the Partnership
Xiaoqi Feng, the Chief Operating Officer of HashKey, emphasized the company’s commitment to providing comprehensive protection to its customers. He stated,
“We aim to improve the financial, technical, and service infrastructure to provide customers with more comprehensive protection.”
This initiative aligns with HashKey’s broader mission to contribute significantly to Hong Kong’s digital asset ecosystem.
Yanlin Guo, Co-founder of OneDegree, highlighted the importance of a robust framework that includes insurance in the cryptocurrency industry. He noted,
“Cryptocurrencies require a strong framework, including insurance, to identify and mitigate all potential risks.”
This partnership between HashKey and OneDegree marks a significant step in addressing these risks and ensuring a secure environment for users.
Regulatory Milestones and Trading Debut
HashKey achieved a significant milestone on August 3rd when it became the first cryptocurrency exchange to receive a regulatory license from Hong Kong’s Securities and Futures Commission, allowing it to offer services to retail investors.
Following this regulatory approval, HashKey launched trading services on August 28th, marking a new chapter in its journey. While trading volume remains relatively modest, with $122,514 worth of crypto changing hands in the past 24 hours, the exchange’s commitment to security and user protection remains unwavering.
Current Offerings and Future Prospects
As of now, HashKey Hong Kong offers users the ability to trade Bitcoin and Ether. Notably, the exchange does not provide margin trading or crypto derivatives trading options. However, it supports fiat deposits in U.S. dollars and Hong Kong dollars from authorized financial institutions worldwide, making it accessible to a global user base.
Industry Perspective on User Insurance
The introduction of comprehensive insurance coverage by HashKey and OneDegree underscores the growing importance of user protection within the cryptocurrency industry. In contrast to some exchanges that offer limited protection, HashKey’s commitment to insuring both digital assets and fiat deposits sets a new standard.
While exchange user insurance has been a topic of controversy, this initiative demonstrates a proactive approach to mitigating risks and enhancing user confidence.
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