Since the Hong Kong government released its policy statement on Virtual Asset Development in October 2022, over 80 virtual asset-related companies from Mainland China and foreign nations have expressed interest in establishing their presence in the city. According to Christopher Hui, Secretary for Financial Services and the Treasury, who made a speech in Hong Kong on March 20, 23 of these firms have already indicated that they plan to set up operations in Hong Kong. These include virtual asset exchanges, blockchain infrastructure companies, and blockchain network security firms. This surge of interest has made Hong Kong a leading hub for Web3 as it furthers its goal of becoming an attractive destination for crypto enterprises.
Hui indicated that these companies were eager to gain further insight into the policy statement’s logistics and comprehend any regulatory obligations, visa stipulations for foreign talent, and specific assistance programs formulated to support the virtual asset and Web3 sector.
Hui underscored Hong Kong’s promising position as a Web3 hub amidst its current 800 fintech companies, citing the government’s budget of $50 million towards expediting the ecosystem. Additionally, he highlighted plans to launch a licensing regime designed for virtual asset service providers by June 2023, potentially attracting more crypto companies to the region. Hui noted: “With the implementation of this comprehensive and transparent regulatory system, we are expecting more VA enterprises to either establish their businesses in Hong Kong or explore development opportunities here.”
The Securities and Futures Commission (SFC) of Hong Kong is now open for feedback on the licensing regime, taking submissions until March 31. It has proposed that the SFC license all centralized cryptocurrency trading platforms in the region operate.
