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.
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.
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.
