Following the local government’s projected 50 million Hong Kong dollar ($6.4 million) capital injection into Web3 under the city’s 2023–24 budget, cryptocurrency exchange Gate.io is preparing to establish a foothold in Hong Kong.
On February 22, Gate Group announced that it would apply for a crypto license in Hong Kong so that it could introduce “Gate HK.” In August 2022, the company’s local subsidiary, Hippo Financial Services, received authorization to offer custodial services for virtual assets.
In a budget statement on February 22, Hong Kong’s financial secretary, Paul Chan, pledged money for Web3 and the formation of a crypto task force.
The Special Administrative Region of China must keep up with Web3’s “constant development,” he continued, noting that it has “great potential.”
“We must adapt to the times and take advantage of this fantastic potential to lead innovative development.”
Chan explained how the money would be used to promote business collaboration, host international conferences, and set up “workshops for young people” to hasten the creation of “the Web3 ecosystem.”
The city’s cryptocurrency laws, he said, are causing a “huge number” of businesses to contemplate opening up shop there. Dr. Han Lin, the founder of Gate Group, referred to Hong Kong as a “hub” and a “global key market” because of its “industry-leading regulatory environment.”
On February 20, Hong Kong revealed its plans for a new licensing system and a suggestion to give ordinary traders access to authorized cryptocurrency platforms.
Chan announced that he “would organize and lead a task group” composed of representatives from financial regulators, market participants, and “relevant policy bureaux” on virtual asset creation in response to the surge in corporate interest.
According to Chan, the task force would “offer suggestions on the sustainable and responsible development of the sector.”
In October, Hong Kong unveiled crypto-friendly legislation frameworks to govern the sector locally. This was the first step in the city’s push to become a recognized global centre for the cryptocurrency business.
Despite being a part of China, the city has its own laws and government because of its unique status. Although Hong Kong’s crypto push appears to be at odds with China’s crypto ban, there are rumors that Beijing officials are covertly supporting the region’s crypto goals.