Crypto service provider HashKey Group has entered the fray alongside competitor Coinbase by launching a global cryptocurrency exchange headquartered in Bermuda, named HashKey Global.

Managing director of Hashkey Global, Ben El-Baz, revealed to Bloomberg on April 8 that the decision to set up operations in Bermuda stemmed from observing Coinbase's successful acquisition of a Bermuda license for its international exchange. El-Baz emphasized the favorable regulatory environment in Bermuda as a key factor driving HashKey Group's expansion strategy.

In light of the collapse of FTX in 2022, El-Baz noted a heightened awareness among exchange users regarding counterparty risk. He highlighted an opportunity for HashKey Global to bridge the gap by combining the user and product experience of Binance with the regulatory and safety framework of Coinbase.

Looking ahead, El-Baz outlined ambitious goals for HashKey Global, aiming to become the largest globally compliant exchange within the next five years, surpassing competitors such as Coinbase International.

Unlike its Hong Kong-based counterpart, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions.

In January, the Hong Kong-based crypto exchange achieved unicorn status after securing nearly $100 million in a Series A funding round, valuing the company at over $1.2 billion. The raised funds are earmarked for various business arms, including asset management, blockchain node validation services, tokenization services, and Web3 incubation.

Over the next six months, HashKey Global plans to offer spot and futures trading, staking services, a project launchpad, and ensure deep market liquidity from day one with the involvement of liquidity providers and market makers.

El-Baz remained tight-lipped about the financial investment made by HashKey for its new exchange initiative, only stating that the company believes it is adequately capitalized and that Bermuda's regulatory framework demands stringent capitalization requirements for licensed institutions.