More than 80 crypto firms plan to launch in Hong Kong, Finance Secretary
Hong Kong, an administrative region of China, has gradually expanded its crypto industry. The city aims to create a robust crypto environment to position it as a prominent junction for crypto and Web3 interactions.
The city’s outstanding performance has attracted several crypto firms to expand their operations into the region. Hong Kong’s Finance Minister reports that over 80 virtual assets are seeking to establish their businesses in the city.
Hong Kong’s crypto sector is attracting more firms
Christian Hui, Secretary for Financial Services and Finance, revealed the attraction Hong Kong has become with its crypto-related development. Hui stated that crypto-related firms’ interest in establishing a presence has grown since October 2022. Hui made the statement during his speech at the Aspen Digital Web3 Investment Summit on March 20.
According to Hui, the Hong Kong government created the right platform for cryptocurrency with its Virtual Asset Development Policy in October 2022. Subsequently, more than 80 crypto-related firms are interested in setting up their business in the city.
Furthermore, the secretary mentioned that about 23 expressed their plans to start their subsidiaries in Hong Kong. These include companies of various types, such as blockchain infrastructure firms, blockchain network security companies, and virtual asset (VA) exchanges.
Hui also stated that most crypto firms seeking a presence in the city are interested in understanding the guidelines for virtual asset development. They will fully know the implementation details of the policy and support measures for the crypto and Web3 sectors in the city. The companies also want to understand regulatory and visa requirements for talent intake.
In addition, the secretary revealed that Hong Kong is moving to a license regime for virtual assets service providers in June 2023. The city will set a comprehensive and transparent regulatory system for its crypto sector. According to Hui, this plan could be more profitable for the city and attract more quality crypto companies to set up operations in Hong Kong.
The Securities and Futures Commission (SFC) in Hong Kong is currently receives submissions for feedback on the licensing regime. This is part of the consultation process for the crypto regulator which will last until March 31. The licensing regime proposes that the regulator must license all operational centralized crypto trading platforms in the city.
Hong Kong’s commitment and support for Web3
Hong Kong has shown its commitment and support in the development of Web3 technology and applications in the city. Secretary Hui said that Web3 technology offer a paradigm shift filled with great opportunities from the internet age.
Hui reiterated that the Hong Kong government attaches great value to the sector. So it plans to make the city a leading hub for Web3 in Asia and worldwide. It parades a robust fintech ecosystem comprising more than 800 fintech firms offering multiple types of financial and innovative services to the public.
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In December 2022, the government also launched an online community platform where local businesses could interact with fintech companies. This move was part of their plans to help fintech startups expand their operations to other regions of the country and beyond.
Featured image from Pixabay and chart from Tradingview.com
