HashKey Group, a Hong Kong-based cryptocurrency financial service provider, is looking to raise up to $200 million in funding to expand its operations and tap new opportunities in the Asian cryptocurrency market. The company is currently in early-stage talks with venture capitalists to raise the funds at over $1 billion valuation. The details of the deal being discussed are not yet available as the talks are being held privately.
HashKey Group’s Business Operations
HashKey Group is a major player in the cryptocurrency ecosystem, covering a wide range of services, including exchange, brokerage, venture capital, custody solutions, and Web3 infrastructure. HashKey Pro, a subsidiary of HashKey Group, holds a permit to operate a virtual asset exchange in Hong Kong, making it one of the few companies to have this permit. Meanwhile, HashKey Capital, the investment arm of HashKey Group, plans to launch at least two liquid funds to tap opportunities in the secondary market.
In September 2020, Hong Kong’s Securities and Futures Commission (SFC) granted HashKey Capital a license to manage a portfolio of 100% digital assets. This move highlighted the government’s efforts to provide a transparent regulatory environment for cryptocurrency firms in the region.
Hong Kong’s Potential as a Regional Crypto Business Hub
Hong Kong has been gradually moving towards providing a transparent regulatory environment for cryptocurrency firms in recent months. The government has announced plans to allow retail trading in digital assets and will issue licenses to virtual digital asset service providers from June 1. This move will pave the way for retail investors to trade in leading cryptocurrencies such as Bitcoin and Ether.
Several big-ticket conferences on digital assets have taken place in Hong Kong in the last few months, generating global interest in the city-state’s potential to emerge as a regional crypto business hub. The Hong Kong High Court also recently made a landmark decision ruling that crypto is property and can be held in trust. This decision instills confidence among crypto investors and puts the asset class on par with other intangible assets such as stocks and bonds.
As Hong Kong continues to take center stage in the regional cryptocurrency business, local firms like HashKey Group are expanding their operations to tap new opportunities. With its wide range of services and plans to raise funds for expansion, HashKey Group is well-positioned to take advantage of the growing market in Asia. Meanwhile, Hong Kong’s supportive regulatory environment and recent court ruling on crypto as property are likely to attract more investors and companies to the region.