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The long bear market has caused some apprehension among the great players in the cryptocurrency sector. One of the players is the Hong Kong Exchange (HKEX), which is reluctant to approve the initial public offering (IPO) applications of the Chinese bitcoin mining machinery manufacturers, Bitmain, a source of the CoinDesk news.
A total of three companies had applied for IPO for the duration of this year, namely Canaan Creative, Ebang and Bitmain to sell shares on HKEX. While the demand for Canaan has expired after almost six months of presentation, in the case of Bitmain it is the apprehension of the stock exchange.
Previous crypto-news, India had reported the status of decay in Canaan. At that time, we had quoted a part of the guidelines established by the exchange stating that "if an applicant has delayed his proposed schedule and more than 6 months have passed since the date of the application form, the applicant will lose the initial quotation fee An applicant who wishes to reactivate his / her application for quotation must submit a new listing application form accompanied by the initial quotation fee In case of modification of the sponsor (including the addition or removal of a sponsor) , the applicant must also submit a new listing application form accompanied by the initial listing fee. "
Speaking with CoinDesk, the anonymous source said: "The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile." There is the real risk that they could no longer exist in a year or two … HKEX does not want to be the first exchange in the world to approve it and kill one of them. "
While the parties involved in the IPOs have not commented, there have been many reactions on the same. Some lawyers who were familiar with the HKEX IPO process told the news portal that the exchange's hesitation was understandable.
Ivy Wong, partner of the Baker McKenzie law firm in Hong Kong, said that HKEX mainly seeks "the suitability and sustainability of the business and how risky the business is for retail investors". He added: "I have seen cases where the applicants could meet the basic listing requirements for the three year track record, but they could not convince the HKEx that its business was sustainable, and the HKEX was reluctant to grant a & # 39; Listing approval. "
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