Hong Kong has long been regarded as one of the world’s most important financial centres, and as the world of cryptocurrency has evolved, the country has seen an increase in the number of crypto fans.
The firm’s most recent crypto fund was formed just six months ago and has close to $90 million in assets under management [AUM]. By early 2022, it hopes to reach a hard ceiling of $300 million. According to rumours, the VC company has piqued conventional investor Richard Li’s interest in blockchain and its uses.
According to CMCC‘s announcement, Li already anchored CMCC’s prior fund through his investment manager, Pacific Century Group, and “will roll over” with other current investors to the newest fund.
In addition, the business has acquired traction in the crypto community as a result of one of its first and largest investments in the blockchain platform Solana. With an investment in a private token sale where SOL was priced at 20 cents, the digital asset has risen to become the sixth-largest cryptocurrency by market capitalization and was trading at $200 at press time. CMCC also invested in protocols such as Cosmos and Terra, adding feathers to its hat in the form of trustworthy investments.
Martin Baumann and Charlie Morris, who own a controlling share in CMCC Global, formed the company in 2016. Li was a shareholder in CMCC’s holding company, together with Cameron and Tyler Winklevoss of Gemini. CMCC was currently in the process of filing for licenses with the country’s securities authority to establish up a new crypto equities fund, with significant early support from the investing members.
It has also been attempting to overcome regulatory difficulties in order to operate its Bitcoin passive tracker fund outside of the nation. This fund was established in 2019 and has a current asset value of $15 million.
The firm will devote a portion of the new digital asset fund to decentralized finance and non-fungible tokens due to the high demand for these services. Morris, the founder, concluded,
“The underlying infrastructure is maturing to the point where we basically can have interesting applications. Particularly in DeFi, we’ve seen higher quality teams.”
Regulators have recommended stronger rules for the industry as Hong Kong-based crypto companies aim to offer a broad range of goods and commodities to investors. A top official from Hong Kong’s Securities and Futures Commission [SFC] stated in September that more needs to be done to combat cryptocurrency fraud.
Meanwhile, the country’s Financial Services and Treasury Bureau were contemplating limiting cryptocurrency access to anyone with a portfolio worth at least $1 million. This might prevent 93 percent of the city’s inhabitants from accessing the internet.
