HashKey Holdings, the parent company of one of the largest licensed cryptocurrency exchanges in Hong Kong, is close to a public listing, according to new filings from the Hong Kong Stock Exchange (HKEX).
The Hong Kong Stock Exchange on Monday published a 633-page post-hearing information package for HashKey Holdings. The document was published at the request of the Hong Kong Stock Exchange Limited and the local financial regulator, the Securities and Futures Commission (SFC).
The post-hearing information package is only published after the Hong Kong Stock Exchange Listing Committee has formally approved the applicant at the listing hearing. In other words, without explicitly stating it, this document indicates that HashKey is close to listing on an exchange and is progressing toward its initial public offering (IPO).
Meanwhile, the document confirms that the deal has not yet been finalized. “The listing application referred to herein has not yet been approved; the Hong Kong Stock Exchange and the Securities and Exchange Commission may accept, return or reject the public offering and/or listing application.”
This is standard HKEX disclaimer language and does not conflict with the HashKey consent. Instead, it indicates that listing is dependent on the completion of the offering documents.
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HashKey’s IPO is likely to attract significant interest
This news comes on the heels of reports in early October that HashKey was aiming for an IPO and listing in Hong Kong this year. At the time, the report was largely based on rumours, citing anonymous sources who allegedly had knowledge of the matter.
HashKey is the largest cryptocurrency exchange in Hong Kong with a 24-hour trading volume of about $108 million at the time of writing, according to CoinGecko data. The information package also lists the world’s largest bank, JPMorgan, and local financial institutions Guotai Junan International and Haitong International as joint sponsors of the listing.
Interest in the offering is likely high, considering that in mid-February, China-based Gaorong Ventures reportedly invested $30 million in HashKey, giving it unicorn status. The pre-investment valuation was allegedly around $1.5 billion, but reports cited unspecified sources that could not be independently verified.
The platform is also looking to expand its reach. In early January, its subsidiary HashKey Europe received approval for a virtual asset service provider license from the Central Bank of Ireland.
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China imposes quarantine on the cryptocurrency industry in Hong Kong
The growing cryptocurrency industry in Hong Kong is not well received by mainland Chinese authorities. Hong Kong began accepting applications from stablecoin issuers in August after introducing a dedicated regulatory framework.
The rollout of stablecoin licenses in Hong Kong has attracted the interest of Chinese tech giants, including Ant Group and JD.com. At the time, reports indicated that HSBC and the Industrial and Commercial Bank of China (ICBC) were planning to apply for stablecoin licenses in Hong Kong.
However, Chinese authorities asked local companies to stop publishing research or holding seminars related to stablecoins in early August. In September, a now-deleted report from Chinese financial outlet Caixin claimed that mainland Chinese companies operating in Hong Kong may be forced to withdraw from cryptocurrency-related activities.
This was followed by reports in late October that Chinese tech giants, including Ant Group and JD.com, had suspended their plans to issue stablecoins in Hong Kong due to regulatory concerns. On Saturday, the People’s Bank of China – mainland China’s central bank – said after a meeting with 12 other agencies that “speculation in virtual currencies has resurfaced,” reiterating that “business activities related to virtual currency constitute illegal financial activities,” in line with its 2021 ban on cryptocurrency trading and mining.
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