Hong Kong is doing its best to provide appropriate regulation to the cryptocurrency market to unleash the potential of technologies such as Web3.
Despite the ongoing industry crisis sparked by the FTX debacle, the Hong Kong government remains committed to developing cryptocurrency infrastructure.
Hong Kong Financial Secretary Paul Chan Mo-po said the local government and regulators are open to working with cryptocurrencies and fintech startups in 2023.
At an event hosted by state-run incubator Cyberport, Chan announced that Hong Kong has become a foundation for connecting high-quality virtual asset companies, public broadcasting service Radio Television Hong Kong (RTHK) reported on January 9.
The Financial Secretary said that in the past two months, the Hong Kong government has received a large number of requests from cryptocurrency-related companies to set up global headquarters in Hong Kong. Chen added that many industry companies have also expressed their willingness to expand their operations in Hong Kong or list on local exchanges.
The official said Hong Kong is doing its best to properly regulate the cryptocurrency market to unleash the potential of technologies such as Web3.
He mentioned that Hong Kong lawmakers passed legislation in December to establish a licensing system for virtual asset service providers. The new regulatory framework aims to provide cryptocurrency exchanges with the same market recognition that currently applies to traditional financial institutions.
Chen also reportedly noted at the event that Hong Kong officials and regulators are working on a number of pilot projects to test the potential benefits of virtual assets and explore related applications. He noted that one of the initiatives includes the issuance of tokenized green bonds by the Hong Kong government for subscription by institutional investors.
Hong Kong has gradually reaffirmed its pro-crypto stance over the past year, becoming the country most prepared for cryptocurrency in 2022.
In mid-December, Hong Kong launched its first two cryptocurrency futures exchange-traded funds (ETFs), raising more than $70 million in pre-listing. This came shortly after the head of the Hong Kong Securities and Futures Commission announced in October that the city was willing to differentiate its approach to cryptocurrency regulation from China’s cryptocurrency ban, which was implemented in 2021.
