HashKey’s IPO seeks US$300 million under shadow of Beijing’s regulatory scrutiny

The initial public offering (IPO) of HashKey Holdings, operator of Hong Kong’s largest cryptocurrency exchange, lays bare challenges faced by local platforms under Beijing’s watchful eye, even though the listing itself was recognition of the growing influence of digital assets in the city, according to analysts.

HashKey, established in Hong Kong in 2018, on Monday cleared its Hong Kong listing hearing after a confidential filing earlier this year, paving the way for an IPO that could raise up to US$300 million. It would be the second listed crypto exchange operator in Hong Kong, after OSL Group, a licensed virtual-asset trading platform.

The listing of HashKey comes as Hong Kong is trying to transform itself into a virtual-asset hub, even though Beijing has reiterated its hostile regulatory stance towards crypto activities on the mainland, casting a shadow over such businesses in the city.

“The acceptance of a major crypto exchange into the bourse is a strong barometer for the mainstreaming of digital assets in Hong Kong,” said Angela Ang, TRM Labs’ Asia-Pacific head of policy and strategic partnerships.

The HashKey booth at the Hong Kong Web3Festival last year. Photo: Handout

HashKey would likely debut on the Hong Kong stock exchange within the next two to three months “if it receives adequate investor interest”, Daiwa Capital Markets analysts Steven Nie and Carlton Lai said in a note on Monday.

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