Over 80 Crypto Firms Eye Hong Kong Presence: Financial Secretary

• Over 80 crypto firms expressing interest in setting up businesses in Hong Kong since October 2022.
• Financial Secretary Christian Hui noted the city’s plans to become a leading Web3 hub.
• Hong Kong government has allocated $50 million to expedite the development of Web3 ecosystem.

Hong Kong Becoming a Crypto Hub

Since October 2022, more than 80 virtual asset-related companies from mainland China and other nations have expressed interest in establishing a presence in Hong Kong as the city looks to become a leading Web3 hub. The Secretary for Financial Services and the Treasury, Christian Hui, revealed that 23 of these firms have already indicated their plans to set up operations in the city.

Government Support for Crypto Development

Hui mentioned that these companies were interested in learning more about the policy statement and regulatory requirements related to virtual assets and Web3 developments. In order to facilitate this development, the government has allocated $50 million from this year’s budget towards expediting the growth of Web3 ecosystems. Additionally, Hong Kong is planning to introduce a licensing regime for Virtual Asset Service Providers (VASPs) by June 2023.

Fintech Companies Already Established

The Financial Secretary also stated that there are currently over 800 fintech companies operating within Hong Kong which highlights its potential as an attractive crypto hub. This is further reinforced by its commitment towards creating an open environment with clear regulations and targeted support measures for virtual assets and Web3 sector participants.

Talent Admission Requirements

Hui also pointed out that talent admission requirements would be taken into consideration when assessing whether or not firms decide to set up operations within Hong Kong’s jurisdiction. This will ensure that only quality VA enterprises are allowed access into the city whilst providing clarity on visa requirements for those looking to join established or upcoming crypto ventures based there.

Conclusion

In summary, it appears that Hong Kong is making strides towards becoming a major player within the global cryptocurrency space with large scale investment from multiple governmental bodies towards accelerating its development as an attractive destination for both established and upcoming crypto ventures alike.