Hong Kong Exchange KuCoin Nets $20 Million Investment From Major VC Firms

Hong Kong-based international cryptocurrency exchange KuCoin has closed a Series A funding round worth $20 million, the company confirmed Nov. 14.

Led by IDG Capital, Matrix Partners and Neo Global Capital, the funds will go towards the release of KuCoin's 2.0 platform, expansion into new markets, research and more.

"We will continue to spare no effort in exploring the best hidden gems in the crypto world while growing exponentially on a global scale and solidifying our position as 'The People's Exchange,'" officials commented in the release.

Strategically affiliated with Chinese blockchain platform NEO, Neo Global Capital has made various investments in blockchain startups in recent months, including South Korean music project Muzika in September.

KuCoin marks a further step in the continued divergence of Hong Kong's cryptocurrency sector from mainland China, businesses seeking to relocate to the autonomous territory to avoid increasingly draconian measures enforced by Beijing authorities.

At the start of November, authorities released new regulatory rules pertaining to both cryptocurrency funds and exchanges.

Last month, Cointelegraph reported that "Traditional" venture capital investment in blockchain and crypto firms has almost tripled in the first three quarters of 2018.