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HashKey, a Hong Kong-registered cryptocurrency exchange, secured a $30 million investment from China-based venture capital firm Gaorong Ventures. This funding round positions HashKey at a pre-money valuation close to $1.5 billion, as reported on February 14. However, the details of the deal stem from unnamed sources and have not been independently confirmed.
The investment by Gaorong, which counts major Chinese technology companies Tencent (HK:0700), Alibaba (NYSE:BABA), and Xiaomi (OTC:XIACF) among its investors, follows HashKey's achievement of unicorn status on January 16. The exchange had previously raised nearly $100 million in a Series A funding round, reaching a pre-money valuation exceeding $1.2 billion.
HashKey has been operating under a license granted by the Securities and Futures Commission (SFC) of Hong Kong since November 9, 2022. This license allows HashKey to deal in securities and offer automated trading services. Additionally, the exchange received its license to operate a virtual asset trading platform on May 30, 2024, under the Anti-Money Laundering and Counter-terror Financing Ordinance (AMLO).
The funding of HashKey comes amidst a broader recovery in venture capital investments in the cryptocurrency sector. According to PitchBook data, the final quarter of 2024 witnessed a slight uptick in venture capital funding compared to the preceding quarter, despite being $300 million lower than the same period in the previous year.
Hong Kong has been actively licensing cryptocurrency trading platforms, with PantherTrade and YAX receiving licenses on January 27. To date, 10 crypto exchanges have been registered under AMLO since 2020, allowing them to operate virtual asset trading platforms in Hong Kong.
The Hong Kong SFC has also completed its first round of "on-site" reviews for crypto license applicants, focusing on client asset protection, KYC processes, and cybersecurity as part of its 2024-2026 strategic priorities.
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