Over 80 crypto firms are eyeing a presence in Hong Kong

Across mainland China and other foreign nations, more than 80 virtual asset-related companies have conveyed interest in establishing a presence in Hong Kong, noticing efforts from the city to become a leading Web3 hub.

In a speech held on March 20 in Hong Kong, Christian Hui, the Secretary for Financial Services and the Treasury, stated that Hong Kong has been attracting “interest” from several crypto firms based around the world since October 2022.

Hui also stated that after the Hong Kong government issued its policy statement on virtual asset development in October 2022, more than 80 virtual asset-related enterprises have expressed an interest in “establishing their presence in Hong Kong” until the end of February 2023.

Whereas, 23 crypto firms have already indicated that ” they plan to establish their presence” in the city, he added. The firms included virtual asset exchanges, blockchain network security, and blockchain infrastructure firms.

These companies were mainly interested in learning more about the “implementation details” of the policy statement, such as regulatory requirements, targeted support measures for the virtual assets, visa requirements for talent admission, and the Web3 sector.

Further, Hui mentioned that Hong Kong already has over 800 fintech companies and that it is “well-positioned” to be a leading hub for Web3, noting the current year’s budget earmarking of “$50 million” to “expedite the Web3 ecosystem.”

He further recapitulates Hong Kong’s plans to establish a licensing reins for virtual asset service promoters in June 2023. He suggested this could usher in more crypto firms invading Hong Kong.

However, Hong Kong’s Securities and Futures Commission (SFC) is currently accepting feedback on its licensing reins as part of a consultation process that is going to continue until March 31.

In the end, Hui proposed that all centralized cryptocurrency trading platforms operating in Hong Kong must be licensed with the legitimate regulatory body.

- Published By Team Hongkong Journalist

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