Over 80 foreign companies involved in digital assets are interested in expanding their presence in Hong Kong. At the same time, the city’s authorities are ready to allocate $50 million in additional funding to “expedite the Web3 ecosystem development.”
Christopher Hui, Secretary for Financial Services and the Treasury Bureau (FSTB), speaking at the Aspen Digital Web Investment Summit, said that various crypto companies around the world are expressing increased interest in moving their businesses to Hong Kong’s jurisdiction.
The increased interest has been noted by the Secretary since October 2022, when the Hong Kong government announced its plans to develop virtual assets as part of the city’s efforts to become a leading Web 3.0 hub. Thus, as of February 2023, more than 80 foreign companies have expressed a desire “in establishing their presence in Hong Kong.”
According to Hui, 23 cryptocurrency firms formally expressed their intentions by submitting the relevant documents to obtain a license. These include virtual asset exchanges, blockchain companies, and blockchain security firms based in Singapore, the U.S., Canada, the U.K., and the European Union.
According to the Secretary, there are currently more than 800 different FinTech companies operating in Hong Kong, offering various types of digital asset services. Hui believes that Hong Kong will soon become the Web3 hub in Asia and also has every chance of gaining recognition beyond its borders.
Studies show that Hong Kong is the jurisdiction best prepared for widespread adoption of cryptocurrency initiatives and is among the world’s top 10 most crypto-friendly jurisdictions.
Hui also noted that the FSTB intended to allocate another $50 million this year to “expedite the Web3 ecosystem development.” The funds will go to:
- the organization of major international Web3 events;
- increase the number of educational workshops for young people;
- the establishment of a working group that will study the situation at the crypto market and report to the government on necessary changes in regulation for further development.
A month ago, the Securities and Futures Commission of Hong Kong (SFC) announced plans to begin issuing licenses to cryptocurrency exchanges from June 2023, with tacit approval from the Chinese government.
