Many crypto firms seek presence in Hong Kong – Financial Secretary

According to the Secretary for Financial Services and the Treasury in Hong Kong, more than eighty (80) virtual asset/crypto-related businesses have expressed interest in establishing their presence in the city.

Christian Hui, the Secretary for Financial Services and the Treasury indicated in a March 20 address in Hong Kong that Hong Kong has attracted “interest” from crypto businesses worldwide since October 2022.

Since the Hong Kong government issued its policy statement on Virtual Asset Development in October 2022, more than eighty virtual asset-related enterprises have expressed interest in “creating their presence in Hong Kong” as of the end of February 2023, according to Hui.

He noted that 23 crypto companies have already signaled their will to “create a footprint” in the city. The companies comprised virtual asset exchanges, blockchain infrastructure providers, and blockchain network security companies.

Christopher Hui, Secretary for Financial Services and the Treasury Bureau, delivers the opening keynote and reinforces HK government’s vision to develop the virtual asset sector in Hong Kong.
He mentions Web 3 presents a paradigm shift to the internet era. pic.twitter.com/9MGkWOCj0O

— Everest Ventures Group (EVG) (@EVGHQ) March 20, 2023

Hui added that these companies were interested in “implementation specifics” of the policy statement, regulatory requirements, visa criteria for talent admission, and targeted assistance measures for the virtual assets and Web3 industry.

Hong Kong has over 800 fintech companies and is “well-positioned” to be a key hub for Web3, according to Hui, who also mentioned the “$50 million” budgeted this year to “accelerate the Web3 ecosystem.”

Hui reaffirmed Hong Kong’s intention to implement a licensing scheme for virtual asset service providers in June 2023. He argued that this could result in an influx of crypto businesses to Hong Kong, adding:

“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 regime through March 31 as part of a consultation process.

It was proposed that all Hong Kong-based centralized bitcoin trading platforms be licensed by the regulatory agency.