Regulatory department of Hong Kong indicated that the regulators are dragging their feet to approve the Initial Public Offering (IPO) of crypto mining equipment giant, Bitmain.
Recently, the South China Morning Post reported that the Hong Kong stock market regulators are feeling that it is too soon to approve an IPO of a company which is related to the crypto industry, as currently there is no proper framework for the industry. Regulators are waiting for a proper framework for the cryptocurrency related businesses in Hong Kong. The regulators said that:
“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.”
Bitmain Technologies Ltd. is a privately owned company which is headquartered in Beijing. The company designs application specific integrated circuit (ASIC) chips for Bitcoin mining. Bitmain was founded in 2013 and by 2018 it became the world’s largest designer of application specific integrated circuit chips.
Bitmain wants to go public to raise funds so, the company applied to the Listing Committee of the Hong Kong stock exchange for a $3 billion IPO. The anonymous sources familiar with the matter told South China Morning Post that at this stage the regulators are very reluctant to approve any IPO which is related to the crypto industry.
This is not the first time that the regulators are rejecting the IPO proposal of a crypto related company. Before Bitmain, the regulators have rejected the IPO proposal of another ASIC mining manufacturer ‘Canaan Creative’ in November. Hong Kong regulators’ ruling could take six months to unfold and the end result can also be a rejection for the crypto mining giant.
Hong Kong and Singapore were used to be a haven for the crypto related businesses but the stricter framework by central banks and other regulatory bodies are attempting to bog down the crypto industry. It could create a hurdle for crypto companies such as Bitmain.