OK Group Retires ‘Okcoin’ Brand

HashKey Group, the operator of one of Hong Kong's two licensed crypto exchanges, declared its newfound unicorn status on Tuesday, having successfully raised nearly $100 million in a recent funding round.Photo by Markus Winkler on UnsplashSeries A funding roundThe term "unicorn" denotes privately held companies valued at $1 billion or more, reflecting the remarkable achievement for HashKey in the rapidly evolving crypto landscape. With a valuation now surpassing $1.2 billion, HashKey positions itself as a major player in the crypto space within East and Southeast Asia. It’s leveraging its activities that span trading platforms, venture funding, wealth management and asset management in key locations like Hong Kong and Singapore. Its Singapore arm was awarded a capital markets license by the local regulator in December. Undisclosed investorsThe fundraising initiative was first reported in May of last year and later announced by HashKey in August. It attracted contributions from both existing and new investors. While the company refrained from divulging specific investor names, it referred to them as "prominent institutional investors" and "leading Web3 institutions," signaling a mix of established entities and those already at the forefront of Web3 innovation. It was previously disclosed that the company has been backed by the support of OKX Ventures, the investment arm of the well-known OKX digital asset exchange. The funds secured will serve a dual purpose – fostering the development of a robust Web3 ecosystem and supporting licensed products in Hong Kong. HashKey's diverse business arms, including asset management, a blockchain node validation service, a tokenization service, and a Web3 incubation arm, are set to benefit from the fresh capital infusion. The allocation of funds towards these ventures aligns with HashKey's strategic vision to contribute significantly to the evolving crypto ecosystem. Hong Kong hubHong Kong, eager to establish itself as a digital asset hub, has been the backdrop for HashKey's growth. The city's dedicated virtual-asset regulatory framework, introduced in June, aims to attract companies while prioritizing investor protection. Under this framework, retail investors can trade major tokens such as Bitcoin and Ether on licensed exchanges, with HashKey Exchange and BC Technology Group Ltd.’s OSL currently leading the way. Despite the optimism surrounding Hong Kong's potential as a crypto hub, uncertainties linger. The city's ability to support multiple crypto exchanges and the long-term commitment of officials to the sector remain open questions, given its susceptibility to occasional scandals. Since commencing its retail trading service in late August, HashKey Exchange has garnered over 155,000 registered users. The platform's 24-hour spot trading volume is estimated at approximately $11 million, according to CoinMarketCap data as of this writing. While this figure may pale in comparison to Binance, the world's largest crypto platform, HashKey's focus on building a resilient and user-friendly ecosystem positions it as a strong contender in the crypto industry's ongoing evolution. The successful funding round and unicorn status attained by HashKey underscore the renewed optimism in the crypto venture capital landscape. Following a market slump in 2022 and various challenges faced by crypto startups, the recent resurgence in token prices has reignited hopes for a more favorable venture capital outlook.

While Pakistan’s Minister of State for Finance and Revenue stated back in 2023 that cryptocurrencies “will never be legalized in Pakistan,” recent events suggest that policy change is now likely.Photo by Hamid Roshaan on UnsplashAttracting foreign direct investmentIn an interview with Bloomberg TV on March 20, Bilal bin Saqib, CEO of the Pakistan Crypto Council (PCC), outlined that the South Asian country plans to move forward towards unbanning cryptocurrency within the country, while establishing a legal framework for such digital assets. The PCC itself was only established in February, with bin Saqib appointed as CEO earlier this month. The role of the PCC is to regulate and integrate blockchain technology and digital assets in Pakistan. The motivation for the proposed change in policy is a desire to attract foreign direct investment into Pakistan. The Trump effectWhen asked “why now,” bin Saqib said that “if [not] now, then never.” Expanding on that theme, he articulated that the return of U.S. President Donald Trump to office combined with his support of cryptocurrency, stands as a “bullish” catalyst for the global development of digital assets. He added: “Trump is essentially flipping the script. Trump signing an executive order instructing regulatory bodies to accommodate digital assets, forming the White House crypto advisory team, creating the U.S. strategic Bitcoin reserve,” . . . “that means that the largest economy in the world is creating it like a valuable national asset.” bin Saqib told Bloomberg that Pakistan is done with sitting on the sidelines and that the country now wants to achieve regulatory clarity on behalf of participants in the crypto sector within the country. He added that there’s a need to establish a legal framework that is pro-business. He added: “We want Pakistan as the leader in blockchain-powered finance, and we want to attract international investment.” Policy u-turnThis new stance on crypto stands in stark contrast to Pakistan’s previous position on cryptocurrencies. The country’s central bank, the State Bank of Pakistan, has warned investors of the risks of dealing in cryptocurrencies on a number of occasions previously, highlighting the fact that no entity is licensed within Pakistan to offer remittance services that implicate crypto tokens.  Earlier this month, bin Saqib outlined that Pakistan is investigating the use of blockchain technology to streamline remittances. The South Asian nation ranks within the top 10 countries in terms of total value remitted each year. At that time, he also confirmed to CoinDesk that Pakistan is exploring real-world asset (RWA) tokenization initiatives.  A report by Chainalysis in 2023 stated that Pakistan is “a world leader in grassroots cryptocurrency adoption.” Wealth preservation was identified as one catalyst for crypto adoption, given that the country has faced high inflation rates in recent years and a devaluation of its sovereign currency. That has led to stablecoins being popular despite a ban being in place on cryptocurrencies all the while. In taking matters forward from this point, bin Saqib said that the PCC is keen to learn from the experiences of jurisdictions such as the United Arab Emirates (UAE), Nigeria, Turkey, Singapore and Hong Kong in determining how best to formulate a pro-business regulatory framework for digital assets in Pakistan. 

Coinbase Signals Interest in UAE BaseIn further evidence of a contrast in progression relative to the approach taken to digital assets in the United States versus other world regions, US crypto exchange Coinbase is understood to be considering the United Arab Emirates (UAE) as a potential strategic hub for the company.Photo by Aleksandar Pasaric on PexelsCause and effectA number of weeks ago, while Gary Gensler of the Securities of Exchange Commission (SEC) was facing a grilling in a House Financial Services Committee hearing on Capitol Hill in Washington, Brian Armstrong of Coinbase put out a statement saying that if the regulatory approach to crypto in the United States didn’t change, then the company would choose to locate itself elsewhere.It hasn’t taken Armstrong long to act on that intention. Late last month, the digital assets platform took its first step outside the United States by securing a license to operate in Bermuda. In line with Armstrong’s earlier comments, the move was seen as a strategic action taken by the company to expand its operations on a global basis.Armstrong had warned that unless regulators in the US provided complete regulatory clarity in relation to the activities of cryptocurrency firms, then the innovation would quickly develop in offshore havens. Alongside the announcement of the license to trade in Bermuda, a blog article was published which indicated that the company was also in discussion with regulators in Abu Dhabi in the UAE with a view towards potentially obtaining a license to operate there.Blog articleFast forward to Sunday, with the publication of yet another blog article by the company, and it seems that the company is hinting at a much stronger likelihood of establishing a UAE base. The article outlines that over the course of the next week, the Coinbase founder and CEO and the company’s executive team are in the UAE to participate in a round of meetings with regulators, industry partners, policymakers, clients and web3/crypto founders.The article outlines that Armstrong would give a keynote at the Dubai Fintech Summit, while elaborating that “the region has the potential to be a strategic hub for Coinbase, amplifying our efforts across the world.” In a recent interview with Bloomberg TV, the Coinbase CEO said that “we are looking for a home to set up an international hub that could serve the long tail of countries in the world.”At the Dubai Fintech Summit on Monday, Armstrong stated that the UAE “is leading the way regionally in crypto” and that it could be a potential international hub. He added: “I would say that the UAE’s approach has been more forward thinking than the US.”UAE crypto aspirationsThere’s no doubt that the UAE is trying to develop itself as a center for crypto and digital asset innovation. The country’s Prime Minister has said as much, declaring his intention to establish the Middle Eastern nation as a key player in the future of crypto. Both the Emirates of Dubai and Abu Dhabi have been proactive in working towards a digital asset regulatory framework, complete with a crypto licensing program in recent months.