Will Hong Kong become a Web3 hotspot?
2 min readHong Kong is becoming more and more attractive as a business location for crypto companies. While the industry in the USA is increasingly under pressure from the course taken by the regulatory authorities, there are signs of an opening towards Bitcoin and Co. in Hong Kong. The Asian financial metropolis is becoming a new hotspot for Web3 and blockchain companies thanks to a fundamentally crypto-friendly regulatory policy. On March 20, Hong Kong’s Secretary for Financial Services, Christopher Hui, moves into a conference speech a positive balance. After the government issued a policy statement on virtual asset (VA) development last fall, 80 other Web3 and crypto companies have expressed interest in the site. Hui also revealed Hong Kong’s other plans in the crypto sector. The Web3 is “not hype”, but a “paradigm shift”.
Hong Kong as a “Hub for Web3”
Hui’s speech makes it clear how important the crypto sector is in the special economic zone. The government has made a “high-level” commitment to developing the sector and providing a comprehensive business support system. 800 fintechs are already based there. Since the autumn of last year, 80 more have announced their concrete interest. 23 companies have already announced that they are planning a branch in Hong Kong. These include virtual asset exchanges, blockchain infrastructure companies and Web3 startups.
The introduction of a licensing system for VA service providers in June 2023 is also intended to ensure regulatory clarity and pave the way for the settlement of further crypto companies. In addition, the Hong Kong Monetary Authority is working on a regulatory regime for “stablecoins” with the aim of implementing the relevant regulation in 2024. Stablecoins are currently under particular pressure in the USA. Some services have already been discontinued there.
In addition, the establishment of a “task force for the development of the VA sector” is planned. In addition, $50 million will be made available to “accelerate the development of the Web3 ecosystem.” The measures aim to make Hong Kong the leading “hub for Web3” and create a “Web3-friendly environment” for “the industry to thrive”.
