The archive · Money & Fintech · Strategic decision · 2022–2024
HashKey: first licensed retail crypto exchange under Hong Kong's 2023 VASP regime
When Hong Kong's new virtual-asset regime opened retail trading in June 2023, HashKey raced to be first licensed — and became a $1.2B unicorn.
HashKey Group
What the business is
Licensed digital-asset financial services group: a Hong Kong virtual-asset exchange serving retail investors, plus asset management, tokenization, staking and a Bermuda-based global exchange.
How it started
After China's 2021 crypto crackdown, Hong Kong chose the opposite path: its Legislative Council passed a full virtual-asset service provider licensing regime in December 2022, effective June 1, 2023, allowing licensed platforms to serve retail investors. HashKey Exchange, one of only two voluntarily licensed platforms alongside OSL, moved to be first under the new rules.
What happened
On August 3, 2023, HashKey upgraded its Type 1 and Type 7 licenses and became the first exchange allowed to offer crypto trading to retail customers in Hong Kong. The group then raised nearly $100M in January 2024 at a pre-money valuation above $1.2B, funding asset management, node validation, tokenization and a Web3 incubation arm. In April 2024 it launched HashKey Global from Bermuda, chasing Coinbase International's volumes.
How it ended up
Still expanding: from Hong Kong's first retail license in Aug 2023 to a valuation above $1.2B in Jan 2024 and a Bermuda-based global exchange in Apr 2024.
Background
Hong Kong's answer to China's crypto ban was a licensing regime: from June 1, 2023, virtual-asset platforms had to be licensed to serve retail investors, part of the city's campaign to become a global crypto hub. HashKey Exchange, already licensed under the earlier voluntary program, positioned itself to be first through the new door.
On August 3, 2023, HashKey upgraded its Type 1 and Type 7 licenses and became the first exchange in Hong Kong permitted to offer crypto trading to retail customers. Being first mattered: the license converted regulatory approval into a brand of safety, exactly what investors wanted after the FTX collapse.
Capital followed the license. In January 2024 HashKey raised nearly $100M at a pre-money valuation above $1.2B, reaching unicorn status, and in April 2024 it launched HashKey Global from Bermuda to compete with Coinbase International. The group's stated goal was to become the world's largest compliant exchange.
What has to be true
- First-mover under the regime: upgrading existing Type 1 and Type 7 licenses let HashKey launch retail trading ahead of applicants starting from scratch.
- Compliance as product: after FTX, users and institutions wanted an exchange whose regulatory status was the selling point, not an afterthought.
- Jurisdiction stacking: Hong Kong for China-adjacent capital and Bermuda for global reach spread the risk that any one regime could close.
- Licenses unlock lines of business: the $100M round funded asset management, staking and tokenization arms that only exist because the group is regulated.
What can be applied
When a regulator opens a market, the license is the moat: first through the door turns policy into trust. Regimes close as fast as they open, so HashKey keeps stacking jurisdictions.
Aftermath
As of April 8, 2024, HashKey Group operated Hong Kong's first retail-licensed virtual-asset exchange and had launched HashKey Global from Bermuda, offering spot trading in 20 cryptocurrencies with plans for futures, staking and a launchpad. The group had raised nearly $100M in January 2024 at a pre-money valuation above $1.2B and said its long-term goal was to become the largest globally compliant exchange.
Sources
- HashKey obtains first license in Hong Kong to offer crypto retail trading
- HashKey follows Coinbase in opening global exchange in Bermuda
spotted an error? The archive wants to know.
Your turn
You just read one. Describe what you are building, and see who is betting on the same thing.
Free account · 3 free questions · no card