HashKey's Hong Kong IPO Tests Asia's Crypto Appetite Amid Regulatory Crosswinds

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Friday, Oct 10, 2025 4:53 pm ET1min read
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- HashKey Group, Hong Kong's largest licensed crypto exchange, files for a $500M IPO amid Asia's fragmented regulatory landscape.

- The listing tests institutional appetite for regulated crypto firms despite China's 2021 sector ban and Beijing's scrutiny of Hong Kong's tokenization projects.

- Hong Kong's 2024 digital-asset framework faces mainland pushback, yet HashKey reports $117M daily trading volumes and launched a $500M custody fund.

- Stricter SFC rules on smart contracts and stablecoin fraud, plus brand impersonation scams, highlight persistent regulatory challenges.

- The IPO mirrors Circle's $1.1B success, signaling potential for crypto listings in Asia despite market volatility and divergent regulatory approaches.

HashKey Group, operator of China Hong Kong's largest licensed cryptocurrency exchange, has confidentially filed for an initial public offering (IPO) in the financial hub, with plans to raise up to $500 million this year, according to Bloomberg. The exchange, which also runs asset management and venture capital arms in China Hong Kong and Singapore, previously secured $30 million in funding from Gaorong Ventures at a valuation above $1 billion Crypto Operator HashKey Said to Mull Hong Kong Listing This Year[1]. The IPO would mark a pivotal test of investor appetite for regulated crypto firms in Asia, amid growing institutional interest in digital assets despite Beijing's 2021 ban on the sector HashKey’s secret $500 million IPO could test Asia’s crypto appetite[2].

China Hong Kong's regulatory framework, introduced in 2024 to position the

city
as a digital-asset hub, has drawn scrutiny from mainland authorities, with recent reports indicating Beijing's securities watchdog urged brokerages to pause tokenization projects in China Hong Kong Crypto Firm HashKey Confidentially Files for Hong Kong IPO[3]. Despite this, HashKey's move underscores the region's efforts to attract capital and innovation. The exchange reported daily trading volumes of approximately $117 million as of February 2025, according to CoinGecko Crypto Operator HashKey Said to Mull Hong Kong Listing This Year[1].

The IPO's timing aligns with broader market dynamics. The global crypto market cap dipped to $4.1 trillion in late October 2025, down from a peak of $4.3 trillion, while

Bitcoin
(BTC) traded at around $121,386, up 30% year-to-date Crypto Firm HashKey Confidentially Files for Hong Kong IPO[3]. HashKey's $500 million Digital Asset Treasury fund, launched in September 2024, aims to enhance institutional custody standards, further solidifying its role in the ecosystem Crypto Operator HashKey Said to Mull Hong Kong Listing This Year[1].

Regulatory challenges persist, however. China Hong Kong's Securities and Futures Commission (SFC) has imposed stricter custody rules, including restrictions on smart contracts in cold wallets, and warned of fraudulent stablecoin activities. HashKey has also faced scams impersonating its brand, prompting the SFC to issue consumer alerts Crypto Operator HashKey Said to Mull Hong Kong Listing This Year[1].

The potential listing would mirror the success of U.S. stablecoin issuer Circle Internet Group, which raised $1.1 billion in June 2025 and saw its stock surge 385% Crypto Operator HashKey Said to Mull Hong Kong Listing This Year[1]. Analysts note that HashKey's IPO could signal a broader shift in Asia's crypto landscape, where regulatory stances vary significantly across major economies HashKey’s secret $500 million IPO could test Asia’s crypto appetite[2].