Bitmain IPO Put in Doubt by Hong Kong Financial Regulators
Hong Kong financial authorities are reluctant to back any crypto-related business at this moment in time while proper rules have been drafted to regulate initial public offerings (IPOs). The news may have a serious knock-on effect on the application of this Bitmain IPO and other associated crypto projects in Hong Kong in the not too distant future.
Hong Kong was recently one of the very crypto-friendly destinations in Asia, but as regulatory bodies turn the screw across the continent, Hong Kong crypto companies are currently in limbo.
The South China Morning Post has reported that Hong Kong stock exchange labs are dragging their feet in approving an IPO from the planet’s largest assembler of crypto mining gear company, Bitmain. The regulators are determined by awaiting for the proper frame to be executed in relation to crypto-related companies in Hong Kong, prior to approving any companies or IPOs, which comprises the Bitmain IPO.
Sources close to the Hong Kong regulators anonymously told the South China Morning Post:
It is premature for any cryptocurrency trading platform – or business associated with the industry – to raise funds through an IPO in Hong Kong before the proper regulatory framework is in place.
The Bitmain IPO could be bogged down in red tape for some time as the Hong Kong regulators’ judgment might take six months to unfold, and end in rejection for its crypto mining giants.
Asian destinations like Singapore and Hong Kong were a sanctuary for crypto-related companies, however as central banks and other regulatory powerhouses try to bog down the sector using a more rigorous frame, it might be just one hurdle too many to its Bitmain IPO.
Bitmain was set back in 2013 and is now the largest assembler of all crypto mining gear on the planet over the last couple of years.
The Bitmain IPO could only be the product of bad timing. Their program comes under a period of change for its Hong Kong crypto industry as new rules are now being drafted to control the IPO market. However, since Bitmain makes over 90 percent of its profits from building crypto mining gear, awaiting the approval of the IPO isn’t the end of the planet for the business.