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HashKey Capital emphasized that it plans to direct the investment into Web3 initiatives in order to broaden its crypto exposure.
Crypto investment company HashKey Group is looking towards leveraging Hong Kong’s digital assets efforts to raise funds at a valuation of over $1 billion to attract potential investors.
The Chinese Special Administrative Region is finalizing digital asset licensing legislation with the goal of becoming a worldwide crypto hub. Hong Kong has been making efforts to promote and regulate the digital asset industry, which could create a favorable environment for firms like HashKey Group.
HashKey is in early talks to raise between $100 million and $200 million, people familiar with the matter said. It is important to note that these details are based on insider information, and the terms of the deal, including the size and valuation, are subject to change as the negotiations progress and are not yet finalized.
Raising funds at a valuation above $1 billion suggests that HashKey Group has achieved significant growth and success in its operations. It also indicates investor confidence in the potential of the crypto industry despite the strains of the past year. It will be interesting to see how HashKey will use the raised funds to contribute to the development of Hong Kong’s digital asset ecosystem.
Meanwhile, HashKey Capital, the investment arm of HashKey Group, recently announced the closure of its third fund, HashKey FinTech Investment Fund III, which raised a total of $500 million. Notably, Fund III received significant support from institutional investors such as sovereign wealth funds, businesses, and family offices.
HashKey Capital emphasized that it plans to direct the investment into Web3 initiatives in order to broaden its crypto exposure. Additionally, the investment firm expanded its business in April by adding wealth management services to its offering directory.
HashKey Valuation and the Link with Hong Kong’s Crypto Push
The push to support crypto is steadily gaining traction in Hong Kong. The Chinese government views Hong Kong as a testing ground for longer-term policy, even while banning most forms of crypto-activity on the mainland.
While regulators globally have been navigating the challenges of overseeing the crypto market following the market crash in the past year and notable incidents like the bankruptcy of FTX, Hong Kong appears to be taking a more open stance by introducing a licensing framework and expanding access for retail investors.
The news of Hong Kong introducing a new licensing regime for virtual-asset service providers and allowing retail investors to trade major tokens like Bitcoin and Ether showcases the city’s contrasting approach to regulating the crypto industry compared to regulators in other parts of the world.
By implementing a licensing regime, Hong Kong aims to establish a regulatory framework that promotes transparency, consumer protection, and the integrity of the virtual asset industry.
However, an Hong Kong official has warned that upcoming crypto regulation will not encourage a relaxed approach despite the city’s friendly stance on crypto and expanding access for retail investors.