Hong Kong attracts over 80 crypto businesses

As part of a consultation, the SFC of Hong Kong is accepting opinions on its licensing system through March 31.

More than 80 virtual asset-related businesses are located in mainland China. China and other countries have indicated interest in establishing a presence in Hong Kong (HK) as the city strives to become a Web3 powerhouse.

Christian Hui, the Secretary for Financial Services and the Treasury, revealed in a March 20 address in Hong Kong (HK) thath HK attracted “engagement” from crypto businesses across the globe since October.

Crypto Businesses Flock to Hong Kong’s Promising Landscape

After the Hong Kong government announced its policy statement on the development of virtual assets in October 2022, more than eighty virtual asset-related enterprises have indicated interest in “creating their presence in HK” as of the end of February 2023, according to Hui.

He noted that 23 crypto companies have already declared their intent to “create a footprint” in the prosperous metropolis.

Virtual asset (VA) exchanges, blockchain infrastructure providers, and blockchain network security firms were among the companies.

In addition to the regulatory requirements, visa criteria for talent entrance, and targeted assistance measures for the virtual assets and Web3 sectors, these enterprises are interested in learning more about what Hui referred to as the “implementation elements” of the policy statement, he added.

Hui believes that HK is “well-positioned” to become a prominent center for Web3 and claims that the city is home to more than 800 fintech companies. Hui also mentioned the “$50 million” that is planned to be allocated for this year to “accelerate the Web3 ecosystem.”

Hui reaffirmed HK’s intention to implement a licensing scheme for virtual asset service providers in June 2023. He speculated that this may result in an influx of crypto businesses to HK:

“Through the establishment of a comprehensive and clear regulatory system, we are expecting more quality VA enterprises to set up businesses in Hong Kong or to seek development opportunities in Hong Kong.”

The Securities and Futures Commission (SFC) of Hong Kong is now soliciting comments on its licensing system until March 31 as part of a consultation process.

It was recommended that all Hong Kong-based  bitcoin trading platforms be regulated by the regulatory agency.