HashKey Responds to Controversy: Adhering to Long-termism with Equal Emphasis on Compliance and Innovation

Recently, some controversial remarks regarding the development of Web3 in Hong Kong and HashKey Group have appeared on social media platforms. In response to external doubts, HashKey accepted an exclusive interview with a media outlet and addressed several market concerns.

HashKey stated that the institutional construction of Web3 is a "marathon" rather than a short sprint. Since the Hong Kong SAR government issued the "Virtual Asset Policy Declaration" in 2022, Hong Kong has been systematically building a Compliance framework, including legislation, licensing, market mechanisms, and investor protection. Although the progress may seem slow, this approach of "building the system while guiding the ecosystem" is more conducive to creating a sustainable financial market.

In response to the criticism of "the Hong Kong market being narrow," HashKey believes this view is biased. As the third largest international financial center in the world, Hong Kong has a large number of high-net-worth individuals, family offices, listed companies, and financial institutions, all of which are potential market participants. At the same time, Hong Kong's legal system, financial regulatory capacity, and institutional capital resources are among the best in the world.

In terms of Compliance, HashKey Exchange's insurance coverage has exceeded 1 billion USD, reaching the first place globally, an increase of more than 10 times compared to the initial amount. This reflects the market's trust in its platform's "security + compliance." HashKey emphasizes that Compliance does not mean it cannot be profitable. In fact, HashKey Exchange's Hong Kong branch achieved breakeven in less than two years, which is rare among globally compliant exchanges.

Regarding rumors about layoffs and financial conditions, HashKey stated that it is undergoing strategic adjustments and organizational upgrades, involving a 10%-20% personnel optimization. However, the company's global workforce has increased from over 500 at the end of last year to over 600 now, with an annual employee turnover rate maintained below 15%. HashKey emphasized that the company "is not short on funds," as major shareholders have provided hundreds of millions of dollars in financial support and have committed to ongoing financial assurances.

For the HSK ecological coin, HashKey states that it is not designed for short-term speculation, but rather as a tool to empower compliance ecosystem construction. The company focuses on building and improving the entire ecological system, enhancing the long-term value of HSK through promoting ecological development and innovation.

HashKey believes that decentralization and Compliance are not contradictory. For Web3 to truly impact the real economy and enter the mainstream financial world, it must have institutional support, legal protection, and regulatory oversight. Compliance is a bridge, not a ceiling.

Looking to the future, HashKey will focus on infrastructure construction, international market expansion, deepening trading business, and ecosystem development. The company stated that it will continue to adhere to a long-term investment strategy with a "ten-year period".

HashKey finally states that the development of Web3 in Hong Kong is at the starting point of the second growth curve. The long race has just begun, and the outcome ultimately depends on endurance and strength, rather than the speed of the start. The company is confident about the long-term development of Web3 in Hong Kong.