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Hashkey Group Targets $1 Billion Valuation with $200 Million Fundraising

According to Bloomberg, Hong Kong-based HashKey Group, Asia’s leading end-to-end digital asset management and finance house, is in preliminary discussions to raise up to $200 million, a move that could propel its valuation north of $1 billion, as Hong Kong emerges as a growing global crypto hub.

The company, with operations extending to Singapore and Tokyo, caters to a broad client base including institutions, family offices, and professional investors. The funding move is being interpreted as an affirmation of Hong Kong’s increasing relevance in the global digital asset space.

In January this year, HashKey Capital, a wing of HashKey Group specializing in crypto and blockchain, announced the successful closure of its third fund, HashKey FinTech Investment Fund III (“Fund III”). The fund secured total commitments of $500 million, underlining the group’s stature as a formidable player in the world of crypto finance.

Fund III, managed by HashKey FinTech Investment, an affiliate of HashKey Capital, saw significant participation from a broad range of investors including sovereign wealth funds, corporations, and family offices. This strong support underscores the group’s credibility and reinforces its position in the market.

As Hong Kong continues to promote its standing as a burgeoning crypto hub, the latest fundraising efforts of HashKey Group align well with this narrative. The proposed funding round, if successful, will not only boost HashKey’s market presence but also strengthen Hong Kong’s foothold in the international digital asset landscape.

Hong Kong SFC Finalizes Regulatory Framework for Virtual Asset Trading Platforms

The Securities and Futures Commission (SFC) of Hong Kong concluded a consultation period today, revealing the finalized regulatory requirements for operators of virtual asset trading platforms licensed by the SFC.

Over the consultation period, the SFC collected 152 written submissions from stakeholders including industry and professional associations, professional and consultancy firms, market participants, licensed corporations, and individuals. These respondents largely welcomed the proposed measures, although several requested clarifications. Following an assessment of the feedback, the SFC made modifications and clarifications to some of the proposed requirements.

In a notable decision, the SFC has approved the proposal to allow licensed platform operators to cater to retail investors, with the majority of respondents showing agreement. To safeguard these investors, the SFC will introduce robust measures such as suitability assessments during onboarding, rigorous token due diligence, admission criteria, improved governance, and mandatory disclosures.

“Hong Kong’s comprehensive virtual assets regulatory framework adheres to the principle of ‘same business, same risks, same rules’, with a key focus on robust investor protection and risk management,” said Ms. Julia Leung, the SFC’s Chief Executive Officer. “This will foster sustainable industry development and support innovation.”

The newly released Guidelines for Virtual Asset Trading Platform Operators will come into effect from 1 June 2023, setting out key expectations such as the secure custody of assets, segregation of client assets, avoiding conflicts of interest, and complying with cybersecurity standards and requirements.

The SFC will provide further guidance on new regulatory requirements, license application procedures, and transitional arrangements. The application forms for trading platforms will be available on 25 May 2023 and the SFC will begin accepting applications on 1 June 2023.

In response to the regulations, operators are encouraged to apply for a license if they can comply with the SFC’s standards. Those unable or unwilling to comply should arrange for an orderly closure of their operations in Hong Kong.

To protect investors, the SFC will continue working with the Investor and Financial Education Council to educate the public about the risks of trading on unregulated platforms. At the time of this announcement, the SFC has not approved any virtual asset trading platform to provide services to retail investors. Most platforms currently accessible to the public are not regulated by the SFC.

The market’s response to the new regulations has been mixed, with the Hong Kong concept token CFX(Conflux) experiencing a pullback.

Currently, Hong Kong’s SFC has licensed only two virtual asset trading platforms: OSL Exchange and HashKey Pro. With the new regulatory framework set to take effect in June, this marks a significant milestone in Hong Kong’s efforts to regulate the fast-growing virtual asset sector.

Blockchain Labs and HashKey Capital Launch Future3 Campus, a Web3.0 Innovation Incubator

Blockchain Labs and HashKey Capital have announced a joint initiative to establish Future3 Campus, a Web3.0 innovation incubator aimed at promoting the global Web3.0 ecosystem. With principal incubation bases in Shanghai, Guangdong-Hong Kong-Macao Greater Bay Area, and Singapore, the incubator aims to foster Web3.0 Massive Adoption, DePIN, and AI.

The Future3 Campus will also launch an inaugural seed fund of $50 million to nurture Web3.0 projects, thus truly serving innovators in the Web3.0 field.

The first incubation batch, known as Future3 Camp 1, will focus on Web3.0 Massive Adoption. Applications for Future3 Camp 1 are now open globally. The selection process aims to choose no more than 15 excellent teams who will receive three months of in-depth incubation followed by nine months of long-tail tracking, including technical guidance, product strategy, professional training, resource docking, publicity, market activities, financing services, and other comprehensive entrepreneurial support.

Camp 1 is set to begin on July 22, with a team of industry veterans from home and abroad acting as mentors, providing one-to-one customized incubation service solutions based on the specific situations of the project. Participating teams will also get a chance to regularly partake in forward-looking industry insight sharing and exchange events, have face-to-face communication with well-known industry investment institutions, communities, and technical representatives, and receive deep technical guidance, market resource support, ecological resource docking, and financing support, which will aid in achieving exponential growth.

In addition to the incubator, Future3 Campus will also provide entrepreneurial guidance for Web3.0 entrepreneurs through various online and offline industry activities and systematic training, paving the way for more talented individuals to enter and develop long-term in the Web3.0 industry.

About Blockchain Labs: Blockchain Labs is one of the earliest blockchain technology research institutions in China, with Ethereum founder Vitalik Buterin serving as the chief scientist. Since its inception, Blockchain Labs has been dedicated to promoting the popularity and development of blockchain technology.

About HashKey Capital: HashKey Capital is an institutional asset management company focused on digital assets and the blockchain industry. As one of the most influential and largest cryptocurrency funds globally and one of the earliest institutional investors in Ethereum, HashKey Capital currently manages over $1 billion in assets, with investments in more than 500 projects across various sectors.

HashKey Exchange Becomes First Licensed Retail Crypto Trading Platform in Hong Kong

Hong Kong, 3 August 2023 – HashKey Exchange has announced the official upgrade of its Type 1 and Type 7 licences, becoming the first licensed virtual asset exchange for retail users in Hong Kong. This significant milestone marks a new era in the region’s cryptocurrency landscape.

License Upgrade and Expansion

Previously holding Type 1 and Type 7 licences, HashKey Exchange underwent a simplified process to obtain the licence upgrade. This allows the platform to expand its services from professional investors to retail users, addressing the market’s need for a licensed platform that offers a secure and straightforward process for buying and storing cryptocurrencies.

The COO of HashKey Group, Livio Weng, stated: “With the establishment of licensed trading platforms and the further clarity of regulatory frameworks in Hong Kong, the industry as a whole will witness increased transparency, leading to a significant boost in investor confidence.”

Security Measures

Security remains a paramount concern for HashKey Exchange. The platform has implemented multi-layered protection of user assets, with 98% of funds kept in cold storage and 2% in hot wallets. Regular audits and compliance inspections are conducted by the Big 4 auditing firms, reinforcing its reputation as one of the most secure exchanges globally.

New Services and Partnerships

In addition to supporting fiat currency deposits and withdrawals, HashKey Exchange has launched its virtual asset over-the-counter (OTC) trading service, HashKey Brokerage, the first compliant OTC trading platform in Hong Kong. The platform has also partnered with Standard Chartered Bank to enhance fiat currency deposit and withdrawal services.

Team Expansion and Pre-Registration

Recently, HashKey Exchange has onboarded over ten senior professionals to collaborate with top financial experts in Hong Kong, ensuring exceptional product quality and user experience. The exchange has also opened pre-registration, offering rewards with HashKey EcoPoints (HSK) and planning a grand ceremony in August to celebrate this milestone.

About HashKey Exchange

HashKey Exchange is a Hong Kong Securities and Futures Commission (SFC) licensed virtual asset exchange operating under Hash Blockchain Limited in Hong Kong. With ISO 27001 and ISO 27701 certifications, the exchange aims to set the standard for virtual asset exchanges in compliance, safety, and security.

HashKey Launches as HK's First Licensed Retail Crypto Exchange, Begins BTC and ETH Trading

On 28 August 2023, HashKey Exchange, the city’s first licensed retail virtual asset exchange (crypto exchange), commenced operations today. The official launch, hosted at the Maritime Museum Central, was attended by key figures from the HKSAR government, leading banks, insurance entities, and representatives from the Big 4 auditing firms.

The platform, which supports direct bank transfers in both USD and HKD, introduced initial fiat trading pairs such as BTC/USD, ETH/USD, and USDT/USD. Joseph Chan Ho-lim, JP, Undersecretary for Financial Services and the Treasury, and Norman Chan Tak-lam, GBS, JP, Chairman of the Hong Kong Web3 Association, were among the notable speakers who shed light on the evolving landscape of the Web3 industry in Hong Kong.

Livio Weng, COO of HashKey Group, highlighted the capabilities of the HEX Engine, a robust system designed to handle up to 5,000 transactions per second (TPS). Emphasizing compliance, HashKey Exchange operates under the stringent guidelines set by the Hong Kong Securities and Futures Commission. This includes rigorous user admission protocols, anti-money laundering measures, and consistent transaction monitoring. Additionally, the platform has fortified its security measures, storing 98% of its digital assets in cold wallets. To ensure transparency and adherence to regulatory standards, regular audits are conducted by the Big 4 accounting firms.

In celebration of its inauguration, HashKey Exchange is offering a temporary waiver on trading fees and has introduced the “HashKey Grand Launch Festival,” providing added benefits for its new user base.

HashKey Exchange, a subsidiary of HashKey Group, stands as the pioneer in Hong Kong, having received the green light for virtual asset trading for retail users from the Securities and Futures Commission (SFC). HashKey Group, a prominent digital asset financial service provider in Asia, delivers a comprehensive suite of services, ranging from trading to Web3 infrastructure, with operations spanning Hong Kong, Singapore, and Japan.