Hong Kong, a special administrative region of China, has gradually become more open to the cryptocurrency industry. The city aims to create a robust crypto environment to position itself as an ideal hub for crypto and Web3 activities.
The city's outstanding performance has attracted many crypto companies to expand their businesses here. Hong Kong's Finance Minister has announced that more than 80 digital asset companies are looking to establish their businesses in the city.
Hong Kong's Crypto sector is attracting more and more companies
Christian Hui, Secretary of the Treasury and Financial Services, revealed Hong Kong's appeal to the development of cryptocurrency. Hui stated that the interest of crypto-related companies in establishing a presence has increased since October 2022. Hui made this statement during his speech at the Summit Aspen Digital Web3 investment on March 20.
According to Hui, the Hong Kong government created a suitable foundation for cryptocurrencies through the Digital Asset Development Policy in October 2022. After that, more than 80 crypto-related companies showed interest. establishing a business in the city.
Furthermore, the Minister mentioned that about 23 companies expressed plans to establish their subsidiaries in Hong Kong. These include companies of various types, such as blockchain infrastructure companies, blockchain network security companies, and digital asset (VA) exchanges.
Additionally, Hui stated that most crypto companies looking for a presence in the city are interested in understanding the Digital Asset Development policy. They want to know the full implementation details of the policy and support measures for the crypto and Web3 sectors in Hong Kong. Companies also want to understand the regulatory and visa requirements for recruiting talent.
Additionally, the department secretary also revealed that Hong Kong will move to a licensing regime for digital asset service providers in June 2023. The city will establish a comprehensive regulatory system and transparency for its cryptocurrency sector. According to Hui, this plan could bring more profits to Hong Kong and attract more quality crypto companies to set up business here.
Hong Kong's Securities and Futures Commission (SFC) is currently receiving feedback on its licensing regime. This is part of the consultation process for the cryptocurrency regulator, which runs until March 31. The licensing mechanism proposes that the regulator must license all centralized crypto trading platforms operating in the city.
Hong Kong's Commitment and Support for Web3
Hong Kong has demonstrated its commitment and support in developing Web3 technology and applications in the city. Minister Hui said that Web3 technology brings a paradigm shift filled with great opportunities from the internet era.
Hui reiterated that the Hong Kong government attaches great importance to this sector. So, it plans to make the city a leading hub for Web3 in Asia and worldwide. It parades a robust fintech ecosystem consisting of over 800 fintech companies offering several types of financial and innovative services to the masses.
In December 2022, the government also launched an online community platform where local businesses can interact with fintech companies. The move is part of a plan to support fintech startups expanding their businesses to other regions in the country and beyond.