Hong Kong Committed to Developing Crypto Infrastructure Despite Industry Crisis

• The government of Hong Kong remains committed to the development of cryptocurrency infrastructure despite the ongoing industry crisis.
• Financial Secretary Paul Chan declared that Hong Kong has become a foundation connecting high quality virtual asset firms.
• The local government is open to collaboration with crypto and fintech startups in 2023, and has passed legislation to set up a licensing system for virtual asset service providers.

The government of Hong Kong is continuing its commitment to the development of cryptocurrency infrastructure despite the ongoing industry crisis. This was declared by Financial Secretary Paul Chan during an event hosted by the state-run incubator Cyberport. He said that the local government is open to collaboration with crypto and fintech startups in 2023, and has passed legislation to set up a licensing system for virtual asset service providers.

The Financial Secretary went on to explain that Hong Kong has become a foundation connecting high quality virtual asset firms, and that the government has received lots of requests to set up global headquarters in Hong Kong from crypto-related firms over the past two months. In addition, many industry firms have expressed willingness to expand operations in Hong Kong or to go public on local exchanges.

Paul Chan noted that the Hong Kong government is doing its best to provide an appropriate amount of supervision to the crypto market in order to release the potential of technologies like Web3. He believes that this will help create a stable and secure environment for businesses and investors to thrive.

The government of Hong Kong has been proactive in its support of the cryptocurrency industry. It has been actively engaging with industry stakeholders to ensure compliance with regulations, while also providing a conducive environment for innovation and development.

The Hong Kong government is also encouraging collaboration between traditional financial institutions and virtual asset service providers, in order to create a more integrated and comprehensive ecosystem. This will bring a wider range of products and services to the market, further stimulating the growth of the industry.

Overall, it is clear that the government of Hong Kong is serious about creating a favourable environment for the cryptocurrency industry. With its commitment to providing an appropriate amount of supervision and encouraging collaboration, Hong Kong is well-positioned to become a crypto hub in the years to come.