Recently, a "short essay" about the development of Web3 in Hong Kong and HashKey Group has sparked heated discussions on social platforms.

Faced with various questions such as "layoffs", "no money", "compliance without profit", HashKey responded to several issues of concern to the outside world in an exclusive interview with PANews. In this exchange, HashKey did not avoid controversy, but told the story of a long-termist.

Reporter: What does Hash Key think about these recent discussions?

Hash Key : Recently, a "small essay" about HashKey has indeed caused a lot of heated discussions, and many friends have come to ask about the company's situation. First of all, thank you for your concern. Quoting a famous saying: "Defamation is itself a kind of admiration." We are willing to take this opportunity to chat with you.

Reporter: Some people believe that the development of Web3 in Hong Kong is too slow, and some even believe that "Hong Kong has missed the opportunity." What does Hash Key think?

Hash Key : We understand everyone’s anxiety to “see results”, especially in the context of the high volatility of the global virtual asset market. But we must emphasize one point: the institutional construction of Web3 is a “marathon”, not a 100-meter sprint.

Since the SAR government issued the "Virtual Asset Policy Declaration" in 2022, Hong Kong has begun to systematically build a compliance framework. This is not "sloganeering", but solid progress from legislation, licenses, market mechanisms to investor protection, step by step. These views reflect that they are using a "stopwatch" to measure the results of the "marathon" . Comparing Hong Kong with the world's first international financial center is understandable if it is to motivate Hong Kong. However, it is biased to use this to deny Hong Kong's policies and achievements in developing Web3.

When the SAR government first issued the "Policy Declaration on Virtual Assets" in 2022, few people believed in Hong Kong's development into an international virtual asset center. HashKey responded to the SAR government's call and held the first Web3 Carnival in early 2023. At the beginning, many people did not believe it. Fortunately, there are still a group of foresighted people who actively participate in the event.

We remember that three days before the opening of the carnival, it was hard to get a ticket for direct flights from Singapore to Hong Kong. Many friends came to Hong Kong via Seoul, Tokyo, Shenzhen, and Guangzhou. This year, two American professional conference organizations chose to hold a conference in Hong Kong. There are three conferences of tens of thousands of people in Hong Kong each year, representing the Web3 industry in China and the United States. As the "originator" of HashKey, we are proud of it on the one hand, but we also feel a little "jealous" on the other hand. From time to time, we think of a Hong Kong proverb: "No one cultivates a barren field, but people fight for it when it is cultivated!"

What are you fighting for? The world is bustling with people all for profit.

Reporter: Compared with the United States, South Korea, and Dubai, is Hong Kong's pace slow? Will this weaken its international competitiveness? How does Hash Key respond to the question of "Hong Kong's narrow market"?

Hash Key :

Hong Kong is indeed not the "fastest", but we do not consider this a disadvantage.

Some regions have adopted a radical model of "relaxing first and regulating later", which did attract traffic in the early stages, but also brought about regulatory uncertainty, asset security gaps and other issues. Hong Kong, on the other hand, has chosen the route of "building systems while guiding the ecosystem" , using internationally accepted compliance standards as a foundation 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 the world's top legal system, financial regulatory capabilities and institutional capital resources. What real builders value is not the speed at the starting line, but the safety and return at the finish line.

Regarding the question of "Hong Kong's narrow market", as an international financial center, Hong Kong has a large number of high-net-worth individuals, as well as sufficient family offices, listed companies, financial institutions and investment funds. These institutions and money have their own compliance requirements. In Hong Kong, any financial services must undergo KYC and AML.

Reporter: Hash Key 's insurance coverage has exceeded 1 billion US dollars, which is the first in the industry. What does this mean?

Hash Key : This is a milestone worth sharing.

At first, insurance companies were very cautious about the coverage of crypto trading platforms, and HashKey only received about $100 million at the beginning. By continuously improving risk control processes, optimizing asset management systems, and strengthening compliance audits, our protection capabilities have been highly recognized by insurance institutions. Today, Hash Key Exchange's insurance coverage has exceeded $1 billion, ranking first in the world, more than 10 times higher than the initial insurance coverage.

This is the market's true trust in the "security + compliance" of our platform.

Reporter: Some people question that "compliance does not make money", is this true?

Hash Key : This is a common misunderstanding. In fact, the cost of compliance has never been the biggest problem. The key is whether you have the ability to transform compliance into trust dividends and economies of scale .

Let us share a piece of information: HashKeyExchange Hong Kong Station achieved a break- even in less than two years, which is rare among global compliant exchanges. We believe that doing compliant business according to the rules is not a reason to be FUD (Fear, Uncertainty, and Doubt).

We have also always emphasized that we will not sacrifice compliance for growth. We believe that the era of "wild growth" will eventually pass, and compliance is the passport for Web3 to truly enter the mainstream financial system.

We have reason to believe that compliance is the only way for Web3 to empower the real economy. The transformation of compliance capabilities into market advantages requires a chain reaction process: obtaining regulatory licenses → accumulating trust capital → building an ecological network → releasing commercial value . HashKeyExchange's over-the-counter block trading (OPT) business has recently achieved explosive growth. In the first quarter of 2025, the transaction volume soared by more than 400% compared with the same period last year , setting a record high. It is the empirical evidence that this process has entered the explosive stage. HashKey has proved that compliant exchanges can be profitable.

Reporter: But the cost of engaging in virtual asset trading services in Hong Kong is indeed very high. Will this affect the attractiveness of the industry?

Hash Key : Yes, the cost of engaging in virtual asset trading services in Hong Kong is indeed much higher than in places that do not require KYC or AML.

But the fact is that there are still dozens of institutions applying for licenses in Hong Kong. The compliance of virtual assets is a long track that takes years or even decades. The rhythm of "one day in the cryptocurrency world is ten years in the real world" may make some people accustomed to the fast-forward mode, but this does not mean that Hong Kong's pace is slow. The solid progress from the licensing of VASP exchanges to the legislation of stablecoins confirms the forward-looking nature of Hong Kong's strategy and its steady progress.

Reporter: There have been recent rumors that Hash Key is undergoing large-scale layoffs and is even short of funds. Is this true?

Hash Key : Thank you for your concern. We are indeed adjusting our strategy and upgrading our organization, which of course also involves personnel optimization. The only thing we can guarantee is that in the past and in the future, HashKey will continue to adjust, optimize and upgrade our team to increase the density of talents and better support the group's strategic layout of Hong Kong and global development. In order to implement the strategic adjustment, business focus and personnel optimization decisions made by the company's strategic meeting in March this year, the proportion of this talent adjustment is basically between 10% and 20%.

Specifically, the talent replacement is mainly based on the following four considerations: employees with inconsistent ideas, employees whose performance does not meet the standards, employees whose positions can be replaced by AI technology, and employees who have two-way choices of job changes due to strategic adjustments and business focus. We believe that those partners who leave HashKey will continue to shine on a stage that is more suitable for them.

The global staff size of HashKey Group has grown from more than 500 people at the end of last year to more than 600 people today. How can there be large-scale layoffs? The annual employee turnover rate remains below 15%. We are also continuing to absorb fresh blood to join and work together to promote the long-term development of the company. At present, HashKey is accelerating the expansion of high-growth business lines such as HashKeyOTC Global and HashKeyChain, and continues to recruit outstanding practitioners worldwide. We sincerely invite outstanding talents who have Web3 beliefs, identify with compliance values and are consistent with our strategic direction to join us and jointly build a compliant ecological future for the virtual asset industry.

In addition, everyone is very concerned about Hash Key ’s financial situation, so let us briefly explain it - Hash Key is not short of money!

HashKey shareholders have strong financial strength, especially our major shareholder. In the past few years, our major shareholder has provided hundreds of millions of dollars of solid financial support and promised to continue to serve as HashKey's most solid "logistics minister" to provide financial security. As mentioned earlier, Hash Key Exchange Hong Kong Station has achieved its own balance of payments in less than two years. In addition, our asset management business and infrastructure business have been very profitable; the group's continued external financing is necessary for further expansion and development of the business. The industry is advancing by leaps and bounds, and there are too many things to do. For example, promoting asset tokenization, obtaining licenses for HashKeyChain and new markets, and establishing new compliant exchanges. It is worth mentioning that our Middle East station has just opened in May this year, and we are also applying for licenses in Europe and other regions at the same time. Ten thousand years is too long, so we must seize the day!

Reporter: There are also disputes about HSK Eco-Coin from the outside world, and some people think that it lacks upward momentum. What do you think about Hash Key ?

Hash Key : We understand that everyone is concerned about price performance, but Hash Key Eco-Coin HSK is not a coin designed for "short-term speculation" . The value foundation of HSK lies in enabling the construction of a compliant ecosystem. It is obviously one-sided to put HSK in the evaluation framework of "monthly ups and downs" in the currency circle. We focus on working hard to build and improve the entire ecological system, and enhance the long-term value of HSK by continuously promoting ecological development and innovation. At the same time, we will not manipulate the price of HSK. The positioning of HSK is the core incentive mechanism of the entire ecological platform. We can only be terrified and work day and night for the public!

Reporter: Are compliance and decentralization naturally contradictory?

Hash Key : This is a very common but necessary view to correct.

Decentralization is a technical architecture, and compliance is a market system. The two are not contradictory . If Web3 is to truly influence the real economy and enter the mainstream financial world, it must have institutional support, legal protection, and regulatory compliance. Otherwise, the user scale, capital volume, and ecological complexity will not be able to support it.

HashKey has always believed that the real Web3 is not "deregulation" but "new governance". Compliance is a bridge, not a ceiling.

Reporter: What are Hash Key’s strategic priorities in the future?

Hash Key : We are at the starting point of the "second growth curve" and will focus on the following directions:

• Infrastructure : HashKeyChain was officially launched to promote asset tokenization;

• International expansion : The Middle East station has opened, and licenses are being applied for in Europe and other potential markets simultaneously;

• Deepening of trading business : OTC, options, financial management and professional services will be the key areas;

• Ecosystem construction : Strengthen HSK incentive mechanism, develop on-chain tools, and introduce developer communities.

We have been preparing for this for a long time and will continue to make patient investments over a period of ten years.

Reporter: Finally, what are Hash Key’s expectations for the long-term development of Web3 in Hong Kong?

Hash Key : Standing at the starting point of the second growth curve, HashKey has made plans in terms of strategic positioning, business focus, resource preparation, and capacity building. We have set a ten-year deadline! We always believe that the outcome of a long-distance race ultimately depends on endurance and strength, not the speed of the start. Don't be too anxious, the long-distance race has just begun.

Hong Kong is great! Hash Key is great too! Come on!