HashKey Group to Raise Around $200M to Expand Crypto Operations

As per the recent reports, HashKey Group, a Hong Kong-based crypto financial services business, has claimed to have received up to $200 million in capital to pursue new prospects.

A Billion-dollar Valuation for HashKey

The crypto investment firm is purportedly in the initial stages of discussions with venture capitalists in order to raise $200 million at a valuation of more than $1 billion. 

According to Bloomberg, the terms of the agreement being considered are not public since the negotiations are confidential. HashKey Group is involved in several aspects of the cryptocurrency ecosystem, including exchanges, brokerage, venture capital, custody solutions, and Web3 infrastructure. 

Creation of At Least 2 Liquid Funds

In addition, Deng Chao, CEO of HashKey Capital and HashKey Singapore, has stated that the company intends to create at least two liquid funds in an effort to capitalize on secondary market possibilities.

HashKey Aims to Establish Dominance in Hong Kong

Notably, Hong Kong is growing as a major crypto hub, and as a result, local enterprises are making efforts to expand their clientele. The platform got a regulatory license from the Hong Kong Securities and Futures Commission (SFC) in February of this year to provide over-the-counter (OTC) services to consumers in the area. The digital asset heavyweight’s investment arm also received SFC authorisation to manage a digital asset portfolio in 2022.

Hong Kong Swiftly Moving Forward to Adopt Crypto

It is worth noting that Hong Kong has been progressively moving forward with efforts to establish a clear regulatory environment for crypto companies in the past few months. Last year’s market crisis, as well as a series of notable occurrences including the FTX exchange’s insolvency, have underlined the need for regulatory monitoring. 

Furthermore, the SFC has said that it will supervise cryptocurrency exchanges that operate in Hong Kong, adding that exchanges operating in the city will be required to follow current securities rules and regulations. This involves acquiring an SFC license and abiding to severe Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations.