Hong Kong crypto exchange seeks valuation of $1 billion

Hashkey Group, a prominent player in the cryptocurrency investment landscape, is embarking on an ambitious funding drive for a valuation of $1 billion. 

Hashkey attempts to secure large funding

According to Bloomberg, sources familiar with the matter have disclosed that Hashkey is currently engaged in preliminary discussions to secure a substantial funding round ranging from $100 million to $200 million. 

While the deal is steadily progressing, the specific details, including size and valuation, are yet to be finalised and remain subject to potential adjustments. 

With a diversified portfolio spanning venture funding, asset management, and trading, Hashkey is among the many local firms striving to expand their customer base within Hong Kong's rapidly liberalising environment. 

Hong Kong - a new financial hub

The government of Hong Kong has been diligently fostering the development of the digital asset sector as part of a broader endeavour to restore the city's reputation as a pioneering financial hub. As part of these efforts, the city is poised to enable retail trading of major cryptocurrencies on licensed exchanges like Hashkey, ultimately rejuvenating the local economy and reversing the previous talent exodus triggered by Covid-related restrictions.

At present, Hashkey and BC Technology Group Co.'s OSL bourse are the sole licensed operators in the field. However, prominent exchanges such as OKX and Bitget have expressed their intent to seek licensure under Hong Kong's new regulatory framework.

Hong Kong’s new found commitment to crypto businesses running out of the islands perhaps stems from the Chinese government’s rethinking of its strategy towards crypto. It might appear that China will use Hong Kong as a ring fenced testing ground for cryptocurrency technology, while keeping crypto out of the Chinese mainland, at least for now.

From next month, Hong Kong will initiate its new licensing regime which will allow retail investors to trade certain major cryptocurrencies such as Bitcoin and Ethereum.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.