Almost eighty companies have shown interest in establishing a presence in Hong Kong

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While the city strives to restore its place as a worldwide crypto center by adopting a more accommodating regulatory approach, virtual asset-related businesses have shown significant interest in Hong Kong.

Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui, said in a recent speech that since October 2022, over eighty crypto-related enterprises have shown interest in establishing a presence in the city.

“As of the end of February 2023, Invest Hong Kong has received expressions of interest from more than 80 Mainland and overseas virtual asset-related enterprises interested in establishing a presence in Hong Kong.”

Hui said these enterprises include virtual asset trading platforms, blockchain infrastructure companies, blockchain network security companies, virtual currency wallet and payment companies, and other Web3 initiatives.

Although most of these enterprises are Chinese, corporations from Canada, the European Union, Singapore, the United Kingdom, and the United States have shown interest in relocating to Hong Kong.

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

As the Hong Kong government announced its policy statement on Virtual Asset Development in October 2022, clarifying its position on virtual assets, there was an increase in interest.

Hong Kong, once the world’s crypto capital, began to lose its position in the middle of 2022 due to rising concerns about the city’s regulatory ambiguity on cryptocurrencies and the emergence of potential rivals such as Singapore and Dubai, which are viewed as more accommodating to the crypto industry.

To once again recruit crypto entrepreneurs, the city has lately taken a more crypto-friendly posture.

In February, the Securities and Futures Commission (SFC) of Hong Kong issued a consultation document on its proposed regulatory system for cryptocurrency trading platforms. All crypto platforms will need a license from the SFC beginning in June when the new laws are enacted.

In addition, the regulator said that ordinary investors would be permitted to trade some “large-cap tokens” on regulated exchanges, provided that protections like knowledge exams, risk profiles, and acceptable exposure limitations are implemented.

Previously, the Hong Kong government had granted ordinary investors access to exchange-traded funds (ETFs) trading in Bitcoin and Ether futures from CME Group (CME).

During his address, Hui said, “Hong Kong is well-positioned to be a major center for Web3 in Asia and beyond, and we put significant emphasis to the virtual asset (VA) and Web3.” 

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