Hong Kong raises $100 million to fund crypto industry
Hong Kong aims to regain its status as a leading financial and crypto hub, and to this end, domestic investors have established the ProDigital Fund to raise $100 million.
Having already secured US$30 million in commitments, the fund aims to reach its target by the end of this year, fueling the growth of the digital asset industry in Hong Kong.
ProDigital Fund to “embrace” Hong Kong and its policies
The ProDigital Fund will focus on early-stage Web3 companies targeting the local market. The fund’s backers include notable investment firms in Asia, such as Ben Ng, a partner at SAIF Partners, and Curt Shi, an experienced technology investor from China.
Sunwah Kingsway Capital Holdings and Golin International Group are the other investors backing the fund. Despite some investors’ reluctance to invest in crypto projects, Shi has reported a smooth fundraising process.
The fund has attracted interest from investors in China, Australia, Hong Kong and Singapore, highlighting a growing interest in crypto and digital assets in the region.
Shi mentioned:
I believe that Hong Kong will continue to have a degree of openness and flexibility. While our portfolio and funds will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as Europe and the US.
ProDigital Future Fund intends to expand its operations outside of Hong Kong to include Australia, Singapore, Europe and the United States, while maintaining a strong commitment to Hong Kong and its policies.
The fund has invested in six digital asset projects, including GigaSpace, a metaverse company, and One Future Football, a digital football league operating in stealth mode from Australia.
Hong Kong aims to promote a crypto-friendly environment
To address the challenges that crypto companies are witnessing in setting up corporate bank accounts, the Hong Kong government has arranged a meeting between these firms and bankers.
This initiative means that Hong Kong is committed to bringing positive changes in the space by supporting the sector and easing the financial obstacles.
In addition, Hong Kong-based crypto firms have seen interest from several Chinese state-owned banks, such as Bank of Communications, Bank of China and Shanghai Pudong Development Bank.
These banks have started banking services for these firms. According to Hong Kong’s Secretary for Financial Services and the Ministry of Finance, more than 80 companies in the digital asset industry have expressed interest in establishing operations in Hong Kong since October 2022.
Hong Kong proposed its crypto regulation bill in October 2022. On February 20, the Securities and Futures Commission revealed a licensing regime for crypto exchanges to be implemented in June this year.
This will require compliance with various regulations such as Know Your Customer (KYC), Anti Money Laundering Policies (AML), Combating of Financing of Terrorism Rules (CFT) and secure assets.
Featured image from UnSplash, chart from TradingView.com
