Hashkey Group To Raise Funds At A Valuation Above $1 Billion

Key Points:

• Hashkey Group, a cryptocurrency investment company, intends to raise funds at a value of more than $1 billion.
• The company is in the early stages of discussions to raise $100 million to $200 million.
• The Hong Kong government is encouraging the growth of the digital asset industry.

According to Bloomberg, Hashkey Group, a crypto investment company, intends to raise funds at a value of more than $1 billion, capitalizing on Hong Kong’s digital asset drive to woo prospective investors.

Hashkey, which runs one of the city’s only two legal digital currency exchanges, is in early-stage negotiations to fund $100 million to $200 million. The company is one of numerous locally-based businesses trying to increase their consumer base in an environment that is increasingly liberalizing.

The sale is moving forward, but details such as size and value might change since they haven’t been completed, according to the sources, who asked not to be named because they were discussing private discussions.

The Hong Kong government is encouraging the growth of the digital asset industry as part of a larger drive to reestablish the city’s reputation as a cutting-edge financial hub.

On June 1, Hong Kong will implement a new licensing scheme for virtual-asset service providers and will allow individual investors to trade key tokens such as Bitcoin and Ether. It contrasts with how regulators across the world are wrestling with how to regulate the business in the aftermath of last year’s market fall and a series of blowups, including the stunning bankruptcy of the FTX exchange.

To stimulate the local economy, the city will enable retail trading of major currencies on regulated exchanges like Hashkey.

Hashkey and BC Technology Group Co.’s OSL bourse are now the only two having licenses. OKX and Bitget have announced their intention to seek for a license under Hong Kong’s new regulatory environment.

This year, Chinese state-run banks have courted crypto firms, one of the numerous indications that Beijing supports the city’s overarching ambition. This is due in part to the government’s perception of the financial hub as a test bed for longer-term policy, notwithstanding the mainland’s prohibition on most types of cryptocurrency activity.

The Hong Kong Monetary Authority (HKMA) has announced the start of the e-HKD Pilot Project, which might pave the way for a retail central bank digital currency to be implemented (CBDC). The initiative will work closely with many stakeholders to study e-HKD use cases as well as implementation and design concerns.

As Coincu reported, a subsidiary of Greenland Holdings intends to apply for a virtual asset license in Hong Kong. Greenland is the first state-owned corporation to express an interest in joining Hong Kong’s digital trading market, showing that the Hong Kong government’s efforts to promote the city as a virtual asset trading hub have been successful.

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Harold

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