Hong Kong-Based Hashkey's Billion-Dollar Dream: The Next Big Bang In Crypto

Crypto-focused Hashkey Group is reportedly in the preliminary stage of discussions to gather a funding round that could elevate its valuation above $1 billion.

This move comes as the Hong Kong-based company aims to capitalize on the city's drive towards digital asset development.

Quoting sources, Bloomberg reported that Hashkey is considering raising between $100 million and $200 million.

However, details of the transaction, such as the exact figure and valuation, are still subject to change as they are not yet cemented.

While Hashkey refrained from commenting on the matter, it's evident that the company is actively working on various fronts such as venture capital, asset management, and trading in a bid to broaden its client base.

As part of its attempt to reinstate its reputation as a forward-thinking financial hub, the government of Hong Kong is encouraging the growth of the digital asset sector.

Hong Kong's move to allow public trading of key cryptocurrencies on licensed platforms like Hashkey aligns with the aim of invigorating the local economy and reversing the talent exodus exacerbated by prolonged Covid-related restrictions.

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Currently, only Hashkey and OSL, owned by BC Technology Group Co., hold permits to operate.

However, major players in the exchange industry, such as OKX and Bitget, have signaled their intent to seek licensing under Hong Kong's new regulatory framework.

Several crypto companies have reportedly attracted the interest of Chinese state banks this year. This appears to support the assertion that Beijing endorses Hong Kong's broader objectives.

The central government seems to regard the financial hub as a potential experimental zone for long-term policy implementation, despite its strict stance against most crypto-related activities within the mainland.

On June 1, Hong Kong is slated to introduce a new licensing system for virtual-asset service providers.

The plan to enable retail investors to trade major digital currencies distinguishes Hong Kong from global regulators still wrestling with how to deal with the industry in the wake of last year's market slump and the high-profile FTX exchange bankruptcy.

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