China-based Gaorong Ventures has reportedly invested $30 million in the Hong Kong-registered HashKey crypto exchange.
HashKey bagged a $30 million investment from Chinese venture capitalist firm Gaorong at a pre-money valuation of nearly $1.5 billion, according to a Feb. 14 Bloomberg report. However, the report cited unnamed sources that could not be independently verified.
Gaorong is a private VC company that is comprised of a mix of investors, including Chinese tech giants Tencent, Alibaba and Xiaomi.
HashKey achieved its unicorn status on Jan. 16 after raising nearly $100 million in a Series A funding round at a pre-money valuation of over $1.2 billion.
Source: HashKey Group
Related: Hong Kong flags over 30 HashKey-branded crypto scam platforms
HashKey’s regulated presence in Hong Kong
Hashkey has been licensed in Hong Kong to deal in Securities and provide automated trading services since Nov. 9, 2022.
License details of HashKey exchange. Source: Securities and Futures Commission of Hong Kong
According to the public register maintained by the Securities and Futures Commission (SFC) of Hong Kong, HashKey is licensed under the Anti-Money Laundering and Counter-terror Financing Ordinance (AMLO).
The exchange received its license to operate a virtual asset trading platform on May 30, 2024.
Crypto venture funding recovers in Q4 2024. Source: Bloomberg
According to PitchBook data, venture capital investments saw a slight increase in Q4 2024 from the previous quarter. However, the $10 billion raised in the last quarter of 2024 was 300 million lower than the previous year despite a bull market.
Crypto licensing drive in Hong Kong
Hong Kong awarded its latest crypto license on Jan. 27 to two Hong Kong-based crypto exchanges — PantherTrade and YAX.
List of virtual asset trading platforms licensed by Hong Kong SFC. Source: HKSFC
To date, 10 crypto exchanges have formally registered in Hong Kong under AMLO since 2020 and are allowed to operate virtual asset trading platforms.
The SFC listed four top priorities in its 2024-2026 roadmap. Source: Hong Kong SFC
The Hong Kong SFC completed the first round of “on-site” reviews for the crypto license applicants. The inspections are focused on safeguarding client assets, Know Your Customer (KYC) processes and cybersecurity.
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