China's largest crypto enterprise HashKey Group: raises nearly $100 million in funding, valuation surpasses $1 billion

HashKey Group, led by Xiao Feng, the chairman of Wanxiang Blockchain, recently announced the completion of a nearly $100 million financing round, officially joining the ranks of "unicorn" companies with a valuation exceeding $1 billion.

Behind the Financing: Support from New and Existing Investors

In a statement on Tuesday, HashKey Group noted that the recent financing round attracted attention from both new and existing investors, but did not disclose specific investors. The funds raised will be used to expand the Web3 ecosystem and introduce more regulated products in Hong Kong. It is reported that HashKey's valuation has exceeded $1.2 billion.

Key Investor: OKX Ventures?

Insiders revealed that OKX Ventures, the investment arm of the exchange OKX, is one of the main investors in this round of financing. However, both OKX and HashKey representatives declined to comment on this.

HashKey's Diversified Business

HashKey Group's business includes trading platforms, venture capital, and asset management in Hong Kong and Singapore. As an active participant in Hong Kong's digital asset hub, HashKey is seeking further business expansion. Bloomberg reported last May that HashKey planned to raise $100 to $200 million, with a valuation exceeding $1 billion, a goal that now seems to have been achieved.

Recovery After the Market Turbulence of 2022

Following significant market volatility in 2022 and events like the bankruptcy of FTX exchange, funding for cryptocurrency startups has notably decreased. However, in the past 12 months, token prices have rebounded, especially with the optimism surrounding the first U.S. Bitcoin spot ETF, reigniting hope for the venture capital market.

New Regulations for Digital Assets in Hong Kong

In June, Hong Kong introduced a dedicated regulatory framework for virtual assets to restore its position as a financial center. These rules aim to attract company investments while emphasizing investor protection.

Under this framework, retail investors can trade major tokens like Bitcoin and Ethereum on licensed exchanges. Currently, BC Technology Group Ltd.'s OSL and HashKey Exchange are the only platforms with Hong Kong crypto licenses. Hong Kong is also considering opening spot cryptocurrency ETFs and plans to introduce stablecoin regulatory standards in the coming months.

Hong Kong Crypto Regulation Effective June 1: Exchanges Held Responsible for Retail Investors, No Stablecoin Trading Allowed Temporarily

Regulation of Stablecoins in Hong Kong: Launches Public Consultation & Innovation "Sandbox" Program

Uncertainties in Hong Kong's Future

Despite offering a gateway to the local market and Chinese wealth, it remains unclear how many cryptocurrency exchanges Hong Kong can support and whether officials will prioritize cryptocurrencies in the long term, especially considering the industry's susceptibility to scandals.

Growth of HashKey Exchange

Since offering trading services to retail investors in late August last year, HashKey Exchange has attracted over 155,000 registered users. According to data platform CoinMarketCap, HashKey Exchange had an estimated 24-hour spot trading volume of around $16 million on Tuesday 1/16. This is significantly lower compared to Binance, the largest platform, with a trading volume of $14 billion, indicating a substantial gap.

Establishment and Vision of HashKey

Founded in 2018, HashKey is one of the early investors in Ethereum and its chairman, Xiao Feng, conducted in-depth research on blockchain investments during his time at China's Wanxiang Group.

The recent successful financing of HashKey Group reflects the company's rapid growth and the steady recovery of the cryptocurrency market globally. With the continuous development of cryptocurrency exchanges in Hong Kong, the future of HashKey Group will be a focus worth watching.