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 hub for crypto and Web3 interactions.
The city’s outstanding performance has attracted several crypto firms to expand their business into the region. The Financial Secretary of Hong Kong reports that over 80 virtual assets companies seek to establish their businesses in the city.
Hong Kong Crypto Sector Attracts More Firms
Christian Hui, the Secretary for Financial Services and Treasury, disclosed 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 government of Hong Kong 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 establishing their business in the city.
Further, the Secretary mentioned that about 23 expressed their plans to launch their subsidiary businesses in Hong Kong. These include companies of different types, such as blockchain infrastructure firms, blockchain network security companies, and virtual asset (VA) exchanges.
Also, Hui stated that most crypto firms seeking a presence in the city are interested in understanding the Virtual Asset Development policy. They want to fully know the implementation details of the policy and the support measures for the crypto and Web3 sectors in the city. The firms also desire to understand the regulatory and visa requirements for talent admission.
Additionally, the secretary revealed that Hong Kong is moving to a licensing 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 establish businesses in Hong Kong.
The Securities and Futures Commission (SFC) of Hong Kong is currently receiving submissions for feedback on its licensing regime. This is part of the consultation process for the crypto regulator that will last till March 31. The licensing regime proposes 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 developing Web3 technology and applications within the city. Secretary Hui said that Web3 technology offers a paradigm shift filled with great opportunities from the internet era.
Hui reiterated that the government of Hong Kong attaches great value to the sector. So it plans to make the city a leading hub for Web3 within Asia and worldwide. It parades a robust fintech ecosystem comprising more than 800 fintech firms that provide several types of financial and innovative services for the public.
Related Reading: These 5 Cryptos Are Seen Shooting Up In Price With Bitcoin This Week – Here’s Why
In December 2022, the government also launched an online community platform where local enterprises could interact with fintech companies. This move was part of its plans to assist fintech startups in expanding their business to other regions in the country and beyond.
Featured image from Pixabay and chart from Tradingview.com