Exclusive Interview with HashKey Group: Hong Kong is great, and so is HashKey
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Exclusive Interview with HashKey Group: Hong Kong is great, and so is HashKey
"We always believe that in a long-distance race, endurance and strength ultimately determine the winner, not the starting speed. Don't rush—this long run has only just begun."
Navigating Web3 tides with focused insightsRecently, discussions about Hong Kong's Web3 development and HashKey Group’s so-called "little essays" have sparked heated debates on social media platforms.
In response to widespread skepticism regarding claims of “layoffs,” “lack of funds,” and “compliance doesn’t generate profit,” HashKey addressed key public concerns in an exclusive interview with PANews. Rather than avoiding controversy, HashKey chose to tell the story of a long-term builder.
In this conversation, HashKey did not shy away from controversy, but instead shared the journey of a long-term player.
Reporter: How does HashKey view these recent discussions?
HashKey: The recent viral “essay” about HashKey has indeed triggered extensive discussion, and many friends have reached out asking about our company status. First, we sincerely appreciate your concern. To quote a famous saying: "Criticism is itself a form of admiration." We welcome this opportunity to talk openly.
Reporter: Some argue that Hong Kong's Web3 development is too slow—even claiming “Hong Kong missed the opportunity.” What’s your take?
HashKey: We understand the anxiety behind the desire to “see results,” especially amid global volatility in the virtual asset market. But one point must be emphasized: institutionalizing Web3 is a marathon, not a sprint.
Since the Hong Kong SAR government released its Fintech 2025 report and the Virtual Assets Policy Statement in 2022, Hong Kong has been systematically building a compliant framework. This isn’t about slogans—it’s about steady progress in legislation, licensing, market mechanisms, and investor protection. These criticisms reflect people measuring a marathon with a stopwatch. Comparing Hong Kong with the world’s number one international financial center may serve as motivation—but using it to dismiss Hong Kong’s Web3 policies and achievements is unfair.
When the government first announced its Virtual Assets Policy Statement in 2022, few truly believed Hong Kong could become a global hub for virtual assets. HashKey answered the government’s call by hosting the first Web3 Festival in early 2023, which initially faced skepticism. Fortunately, there were still visionaries who joined us in making it happen.
We remember vividly—just three days before the festival opened, direct flights from Singapore to Hong Kong were completely sold out. Many attendees flew in via Seoul, Tokyo, Shenzhen, or Guangzhou. This year, two U.S.-based professional conference organizers have each chosen to host major events in Hong Kong. With three large-scale, 10,000-attendee conferences now held annually—one representing China’s Web3 industry and two from the U.S.—HashKey, as the pioneer, feels both pride and a slight twinge of envy. It reminds us of a classic Hong Kong saying: "No one wants to farm barren land—until it's tilled, then everyone fights over it!"
What are they fighting for? Where there's profit, people will flock.
Reporter: Compared to the U.S., South Korea, and Dubai, is Hong Kong moving too slowly? Could this hurt its global competitiveness? How do you respond to claims that “Hong Kong’s market is too small”?
HashKey:
Hong Kong may not be the fastest, but we don’t see that as a weakness.
Certain regions adopt an aggressive “release first, regulate later” model, which attracts traffic quickly but also brings regulatory uncertainty and security risks. Hong Kong has chosen a different path: building regulations while guiding ecosystem development, using globally recognized compliance standards as the foundation to build a sustainable financial market.
We often say: fast doesn’t mean better; stable doesn’t mean slow. As the world’s third-largest international financial center, Hong Kong boasts top-tier legal systems, financial regulation capabilities, and institutional capital resources. True builders don’t care about starting speed—they care about safety and returns at the finish line.
Regarding the claim that “Hong Kong’s market is too small,” let’s clarify: as an international financial hub, Hong Kong hosts a large number of high-net-worth individuals, family offices, listed companies, financial institutions, and investment funds—all of which operate under strict compliance requirements. In Hong Kong, every financial service requires KYC and AML checks.
Reporter: HashKey recently secured over $1 billion in insurance coverage—an industry first. What does this signify?
HashKey: This is a milestone worth sharing.
Initially, insurers were extremely cautious about crypto exchanges. HashKey’s first insurance limit was around $100 million. Through continuous improvements in risk control processes, asset management systems, and compliance audits, we earned strong trust from insurance providers. Today, HashKey Exchange’s insured coverage exceeds $1 billion—ranking first globally—and represents more than a tenfold increase from our initial limit.
This reflects genuine market confidence in our platform’s “security + compliance.”
Reporter: Some claim “compliance doesn’t generate profit.” Is that true?
HashKey: This is a common misconception. The real issue isn’t compliance cost—it’s whether you can turn compliance into trust dividends and scale economies.
Here’s a data point: HashKey Exchange’s Hong Kong platform achieved break-even within less than two years—a rare feat among global compliant exchanges. We believe operating by the rules should never be undermined by FUD (Fear, Uncertainty, and Doubt).
We’ve always stressed: we won’t sacrifice compliance for growth speed. The era of “wild, unchecked growth” will end. Compliance is the passport that enables Web3 to enter mainstream finance.
We firmly believe compliance is the necessary path for Web3 to empower the real economy. Turning compliance capability into market advantage follows a chain reaction: Regulatory approval → Trust capital accumulation → Ecosystem network formation → Commercial value realization. The explosive growth of HashKey Exchange’s Over-the-Counter (OTC) business serves as concrete proof—in Q1 2025, trading volume surged over 400% year-on-year, setting a new record. This demonstrates that compliant exchanges can be profitable.
Reporter: But operating a virtual asset trading service in Hong Kong is indeed expensive. Won’t this affect industry attractiveness?
HashKey: Yes, costs in Hong Kong are significantly higher compared to jurisdictions without KYC or AML requirements.
Yet, dozens of institutions are still applying for licenses in Hong Kong. Virtual asset compliance is a long race measured in years, even decades. While “a day in crypto equals ten years in the real world” might condition some to expect instant results, that doesn’t mean Hong Kong is falling behind. Steady progress—from VASP exchange licensing to upcoming stablecoin legislation—demonstrates the foresight and resilience of Hong Kong’s strategy.
Reporter: There are rumors HashKey is undergoing massive layoffs or facing funding shortages. Are these true?
HashKey: Thank you for your concern. We are indeed adjusting our strategy and upgrading our organization, including workforce optimization. One thing we can guarantee: past and future, HashKey will continuously refine, optimize, and upgrade our team to enhance talent density and better support our global strategy anchored in Hong Kong. To implement strategic decisions made at our March corporate strategy meeting—including business focus and personnel optimization—the current adjustment ratio is approximately 10%-20%.
Specifically, talent reshaping is based on four considerations: employees misaligned with our values, those who failed to meet performance targets, roles replaceable by AI technology, and mutual mismatches due to strategic shifts and business focus changes. We believe those leaving HashKey will shine brightly on paths better suited to them.
How can this be called “massive layoffs” when HashKey Group’s global headcount has grown from over 500 at the end of last year to more than 600 today? Our annual employee turnover remains below 15%. We continue to bring in fresh talent to advance our long-term vision. Currently, HashKey is accelerating expansion in high-growth areas like HashKey OTC Global and HashKey Chain, actively recruiting top professionals worldwide. We warmly invite talented individuals who share our Web3 belief, uphold compliance values, and align with our strategic direction to join us in building the future of a compliant virtual asset ecosystem.
Additionally, since everyone is concerned about HashKey’s finances—we’ll clarify briefly: HashKey is well-funded!
HashKey’s shareholders are financially robust, especially our majority shareholder. Over recent years, they’ve provided hundreds of millions of dollars in stable financial backing, and have pledged to remain HashKey’s strongest “logistics commander,” ensuring ongoing capital support. As mentioned earlier, HashKey Exchange’s Hong Kong operation achieved self-sustaining break-even in under two years, while our asset management and infrastructure businesses have consistently delivered strong profits. Any further external fundraising is driven by the need to expand operations and scale up—there’s simply too much to do in this fast-moving industry. For example: advancing asset tokenization, launching HashKey Chain, securing new market licenses, and establishing additional compliant exchanges. Notably, our Middle East hub launched this May, and we’re simultaneously applying for licenses in Europe and other regions. Ten thousand years is too long—let’s seize the day!
Reporter: There’s debate around HSK, the ecosystem token, with critics saying it lacks upward momentum. What’s your view?
HashKey: We understand interest in price performance, but HSK was never designed for short-term speculation. The fundamental value of HSK lies in empowering the compliant ecosystem. Evaluating HSK through the lens of typical “monthly candlestick movements” in crypto markets is shortsighted. We are committed to building and refining the entire ecosystem, driving innovation and development to enhance HSK’s long-term value. We will never manipulate HSK’s price. As the core incentive mechanism of our entire platform, we approach this responsibility with humility and diligence.
Reporter: Are compliance and decentralization inherently opposed?
HashKey: This is a common but important misconception to correct.
Decentralization is a technical architecture; compliance is a market system. They are not contradictory. For Web3 to meaningfully impact the real economy and enter mainstream finance, it must have institutional support, legal safeguards, and regulatory oversight. Otherwise, user scale, capital volume, and ecosystem complexity cannot be sustained.
HashKey believes: true Web3 isn’t about “escaping regulation,” but about “new governance.” Compliance is a bridge—not a ceiling.
Reporter: What are HashKey’s strategic priorities going forward?
HashKey: We are standing at the beginning of our “second growth curve,” focusing on the following key areas:
• Infrastructure: Full deployment of HashKey Chain and advancement of asset tokenization;
• Global Expansion: Middle East hub is live, with European and other potential markets actively pursuing licenses;
• Trading Business Deepening: OTC, options, wealth management, and professional services are key directions;
• Ecosystem Development: Strengthening HSK incentives, developing on-chain tools, and engaging developer communities.
We’ve prepared extensively for this phase and will continue our patient, decade-long commitment.
Reporter: Finally, what hopes do you have for Hong Kong’s long-term Web3 development?
HashKey: Standing at the start of our second growth curve, HashKey has already mapped out our strategic positioning, business focus, resource allocation, and capability building. We’re playing the long game—for ten years! We firmly believe that in a marathon, victory depends on endurance and strength—not starting speed. Don’t rush. The race has just begun.
Hong Kong is doing great! HashKey is doing great too! Let’s go!
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