80+ Crypto Firms Eyeing Hong Kong As a Foundation Base

Lavina Daryanani
Source: Bitcoin Magazine

Hong Kong remains committed to becoming a crypto and Web3 hub. In fact, as reported recently, China is backing Hong Kong’s crypto vision. Talking at the Aspen Digital Web 3 Investment Summit on March 20, the Secretary for Financial Services and the Treasury, Christopher Hui, re-emphasized that Hong Kong is “well-positioned” to be a “leading hub” for Web3 in Asia and beyond. He added that the region continues to give “great importance” to virtual assets [VAs] and Web3. He said,

“The Government has high-level commitment to developing the sector and providing a comprehensive support system to enterprises which are passionate pioneers and start-ups in this area.”

Also Read: China’s Capital Reportedly Backs Hong Kong’s Vision as a Crypto Hub

Firms line up to establish a base in Hong Kong

Hui said that at the moment, over 80 fintech companies offer different kinds of “innovative and convenient” financial services in Hong Kong. With respect to VA-related numbers, he added,

“As of end-February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related Mainland and foreign companies in establishing their presence in Hong Kong.”

These companies included VA exchanges, blockchain network security, and infrastructure companies. Parallelly, virtual currency wallets, payment companies, and other Web3 projects were also a part of the list. Additionally, the Financial Services and the Treasury Secretary pointed out that 23 companies from the EU, the Mainland, Canada, Singapore, U.K., and the U.S. have indicated that they planned to establish their presence in Hong Kong.

Also Read: Hong Kong’s SFC Looking To Allow Bitcoin, Ethereum Retail Trading

The policy intersection

Alongside helping the VA industry expand in Hong Kong, Hui emphasized that necessary guardrails will be placed to reduce risks. Recently, Hong Kong’s SFC chalked out its plan outlining how it planned to allow retail investors to trade cryptocurrencies. Only exchanges that are licensed by the agency will be able to facilitate the same from June 2023. Hui emphasized that via the licensing system, regulators expect “more quality VA enterprises” to set up businesses and seek opportunities. Hui also said,

In addition, the Hong Kong Monetary Authority is working on a regulatory regime for “stablecoins” with an aim to implementing the relevant regulation in 2024.

Furthermore, in this year’s budget, Hong Kong allocated $50 million to foster Web3 ecosystem development. In fact, regulators intend to arrange a wide array of workshops and organize major international events to “enable the industry and enterprises to better grasp frontier development and to promote cross-sectoral business co-operation. Commenting on the status of the same, Hui said,

The preparation is in full swing.

Also Read: Hong Kong Allocates HK$50M For Web3: Crypto Task Force Planned