A day after multiple news reports said that the Hong Kong Exchange (HKEX), was “hesitant to approve bitcoin mining company Bitmain’s Initial Public Offering”, the exchange has debunked the news and said it’s a “rumour”.
In an email to news portal, Coin Telegraph, the HKEX has called Bitmain’s alleged hesitation around a purported initial public offering (IPO) “rumors,”. When the exchange was asked for verification and details on the crypto mining firm’s IPO status, it purportedly said, “HKEX does not comment on rumors.”
Interestingly, the exchange took the trouble to email Coin Telegraph that the news that is doing the rounds is a “rumour” but also refused to comment on the status of the IPO, either way. So, at this point, Bitmain’s IPO status is all up in the air.
On Monday, Crypto-News India had carried a news report on the “alleged hesitance on the part of HKEX.” A source had spoken to Coin Desk stating, “The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them.”
A lawyer concurring with the anonymous source had said, “said that HKEX chiefly looks for “suitability and sustainability of the business and how risky the business is for retail investors”. Ivy Wong, a partner at the law firm of Baker McKenzie in Hong Kong, the lawyer had added, “I have seen cases where the applicants could satisfy the basic listing requirements for the three years’ track record, but did not manage to convince the HKEx that its business is sustainable, and the HKEX was reluctant to grant a listing approval.”
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