Recently, a "small essay" about Hong Kong's Web3 development and HashKeyGroup has sparked heated discussions on social platforms. Facing various doubts such as "layoffs," "no money," and "compliance not being profitable," HashKey responded to external concerns for the first time through an exclusive interview. In this exchange, HashKey did not avoid controversy but instead told the story of a long-term believer.
Reporter: How does HashKey view these recent discussions?
HashKey: Recently, a "small essay" about HashKey has indeed triggered many discussions, and many friends have come to inquire about the company's situation. First, thank you for your concern. Quoting a famous saying: "Defamation itself is a form of admiration." We are willing to chat with everyone on this occasion.
Reporter: Some voices believe that Hong Kong's Web3 development is too slow, and even that "Hong Kong has missed opportunities." What does HashKey think?
HashKey: We understand everyone's anxiety to "see results," especially against the backdrop of high volatility in the global virtual asset market. But we must emphasize one point: Web3's institutional construction is a "marathon," not a 100-meter sprint.
Since the Special Administrative Region government issued the "Virtual Asset Policy Declaration" in 2022, Hong Kong has begun systematically building a compliance framework. This is not just "shouting slogans," but steadily advancing step by step from legislation, licensing, market mechanisms to investor protection. These views reflect that they are measuring the "marathon" results with a "stopwatch". Comparing Hong Kong with the world's top international financial center can be understood as motivation for Hong Kong. But to deny Hong Kong's Web3 policy and achievements is somewhat biased.
When the Special Administrative Region government first issued the "Virtual Asset Policy Declaration" in 2022, few believed in Hong Kong's development as a virtual asset international center. HashKey responded to the government's call and held the first Web3 Carnival in early 2023, which initially had many skeptics. Fortunately, a group of visionaries actively participated and contributed.
We remember that just three days before the Carnival's opening, direct flights from Singapore to Hong Kong were hard to book. Many friends came to Hong Kong via transfers from Seoul, Tokyo, Shenzhen, and Guangzhou. This year, two American professional conference organizers chose to hold a conference in Hong Kong. With three large-scale conferences in Hong Kong representing China and the US Web3 industries, HashKey, as the "initiator," feels both proud and slightly jealous, occasionally recalling a Hong Kong saying: "Barren land has no farmers, once cultivated, many will compete!"
What are they competing for? All under heaven move for profit.
Reporter: Compared to the US, South Korea, and Dubai, is Hong Kong's pace slow? Will this weaken its international competitiveness? How does HashKey respond to the criticism that the "Hong Kong market is narrow"?
HashKey:
Hong Kong is indeed not the "fastest," but we do not consider this a disadvantage.
Some regions adopt an aggressive "first release, then regulate" mode, which indeed attracts traffic initially but also brings regulatory uncertainty and asset security gaps. Hong Kong has chosen a route of "building institutions while guiding ecology," using internationally accepted compliance standards to create a sustainable financial market.
We often say: fast does not mean good, and stable does not mean slow. Hong Kong is the world's third-largest international financial center, with top-tier legal systems, financial regulatory capabilities, and institutional capital resources. True builders care not about the starting line's speed, but the safety and returns at the finish line.
Regarding the criticism of a "narrow Hong Kong market," as an international financial center, Hong Kong has a large number of high-net-worth individuals and sufficient institutions including family offices, listed companies, financial institutions, and investment funds. These institutions and funds come with compliance requirements, and in Hong Kong, any financial service requires KYC and AML.
Reporter: HashKey's insurance coverage has exceeded $1 billion, which is an industry first. What does this represent?
HashKey: This is a milestone worth sharing.
Initially, insurance companies were very cautious about crypto trading platform coverage, with HashKey's early coverage around $100 million. By continuously improving risk control processes, optimizing asset management systems, and strengthening compliance reviews, we gained high recognition from insurance institutions. Now, HashKey Exchange's insurance coverage has exceeded $1 billion, reaching global first place, more than 10 times the initial coverage.
This represents the market's real trust in our platform's "safety and compliance".
Reporter: Some doubt that "compliance is not profitable." Is this true?
HashKey: This is a common misunderstanding. In fact, compliance costs have never been the biggest problem; the key is whether there's ability to convert compliance into trust dividends and scale benefits.
We'll share some information: HashKey Exchange's Hong Kong station achieved break-even in less than two years, which is rare among global compliant exchanges. We believe following rules for compliance is not a reason to be FUD (Fear, Uncertainty, and Doubt).
We have always emphasized that we will not sacrifice compliance for growth speed. We believe the era of "wild growth" will eventually pass, and compliance is the pass for Web3 to truly enter the mainstream financial system.
We have reason to believe that compliance is the necessary path for Web3 to empower the real economy. The process of converting compliance capabilities into market advantages involves: regulatory license acquisition → trust capital accumulation → ecosystem network construction → commercial value release. HashKey Exchange's over-the-counter (OPT) business recently experienced explosive growth, with trading volume in the first quarter of 2025 surging over 400% compared to the same period last year, hitting a historical high. This is proof that the process has entered an explosive phase. HashKey has proven with facts that compliant exchanges can be profitable.
Reporter: But the cost of virtual asset trading services in Hong Kong is indeed high. Won't this affect the industry's attractiveness?
HashKey: Yes, the cost of providing virtual asset trading services in Hong Kong is indeed much higher than in places without KYC or AML requirements.
But the fact is, dozens of institutions are still applying for licenses in Hong Kong. Virtual asset compliance is a long track measured in years, even decades. The "crypto pace of one day equals ten human years" might make some people accustomed to fast-forward mode, but this doesn't mean Hong Kong is slow. From VASP licensing to stablecoin legislation, solid progress confirms Hong Kong's forward-looking strategy and steady advancement.
Reporter: There are rumors that HashKey is conducting large-scale layoffs and even lacks funds. Is this true?
HashKey: Thank you for your concern. We are indeed undergoing another strategic adjustment and organizational upgrade, which naturally involves personnel optimization. The only thing we can guarantee is that both past and future, HashKey will continuously adjust, optimize, and upgrade the team to increase talent density and better support the group's strategic layout of establishing itself in Hong Kong and developing globally. To implement the strategic adjustments, business focus, and personnel optimization decided at the company's strategic meeting in March, this talent adjustment is basically between 10%-20%.
Specifically, talent replacement is mainly considered from four aspects: employees with inconsistent philosophies, employees who haven't met performance standards, positions that can be replaced by AI technology, and employees affected by strategic adjustments and business focus requiring two-way selection. We believe that those leaving HashKey will continue to shine on more suitable stages.
HashKey Group's global workforce has grown from over 500 people at the end of last year to more than 600 people today, with no large-scale layoffs. The annual employee turnover rate is maintained below 15%. We continue to attract new talent to join us and work together to promote the company's long-term development. Currently, HashKey is accelerating the expansion of high-growth business lines such as HashKeyOTC Global and HashKeyChain, and continuously recruiting excellent professionals globally. We sincerely invite talented individuals who have a Web3 belief, recognize compliance values, and align with our strategic direction to join us in building a compliant ecosystem for the virtual asset industry.
Additionally, everyone is concerned about HashKey's financial situation, so we'll briefly say—HashKey is not short of money!
HashKey's shareholders have strong financial resources, especially our major shareholders. Over the past few years, our major shareholders have provided billions of dollars in stable funding support and promised to continue serving as HashKey's most solid "logistics minister", providing financial guarantees. As mentioned earlier, HashKey Exchange's Hong Kong station has achieved financial balance in less than two years, and our asset management and infrastructure businesses have been consistently profitable; the group continues to seek external financing to further expand and develop its business. The industry is changing rapidly, and there is much to be done. For example, advancing asset tokenization, obtaining licenses for HashKeyChain and new markets, and establishing new compliant exchanges. It's worth mentioning that our Middle East station just opened in May this year, and we are simultaneously applying for licenses in Europe and other regions. A thousand years is too long, seize the moment!
Reporter: There are controversies about the HSK ecosystem token, with concerns about its lack of upward momentum. How does HashKey view this?
HashKey: We understand everyone's focus on price performance, but the HSK ecosystem token is not designed for "short-term speculation". The value of HSK is based on empowering the compliant ecosystem. Evaluating HSK within the crypto's "monthly rise and fall" framework is clearly one-sided. We focus on building and improving the entire ecosystem, continuously driving ecosystem development and innovation to enhance HSK's long-term value. At the same time, we will not manipulate HSK's price. HSK is positioned as the core incentive mechanism for the entire ecosystem platform, and we are extremely cautious and dedicated!
Reporter: Are compliance and decentralization naturally opposed?
HashKey: This is a common but necessary perspective to correct.
Decentralization is a technical architecture, while compliance is a market system, and the two are not contradictory. For Web3 to truly impact the real economy and enter the mainstream financial world, it must have institutional support, legal guarantees, and regulatory feasibility. Otherwise, user scale, capital volume, and ecosystem complexity cannot be sustained.
HashKey has always believed that true Web3 is not "de-regulation" but "new governance". Compliance is a bridge, not a ceiling.
Reporter: What are HashKey's strategic priorities for the future?
HashKey: We are standing at the starting point of the "second growth curve" and will focus on the following directions:
•Infrastructure: HashKeyChain is officially launched, promoting asset tokenization;
•International expansion: Middle East station is open, and licenses for Europe and other potential markets are being applied for simultaneously;
•Trading business deepening: OTC, options, wealth management, and professional services will be key directions;
•Ecosystem building: Strengthening HSK incentive mechanisms, developing on-chain tools, and introducing developer communities.
We have been preparing for these for a long time and will continue to adhere to a patient investment with a "ten-year perspective".
Reporter: Finally, what are HashKey's expectations for the long-term development of Hong Kong's Web3?
HashKey: Standing at the starting point of the second growth curve, HashKey has already made plans in strategic positioning, business focus, resource preparation, and capability building. We have a ten-year perspective! We always believe that the victory of a long-distance race ultimately depends on endurance and strength, not the speed of the start. Don't be too anxious, the long race has just begun.
Hong Kong is doing great! HashKey is doing great too! Keep going!
