Cryptocurrency exchange Gate.io is preparing to launch a presence in Hong Kong following the local government's planned cash injection of $6.4 million (50 million Hong Kong dollars) into Web3 according to the city's budget for 2023-24.
door group saying on February 22 that it will apply for a crypto license in Hong Kong allowing it to launch "Gate HK." The company's local business, Hippo Financial Services, obtained a license in August 2022 to provide custody services for virtual assets.
It comes as Hong Kong Financial Secretary Paul Chan announced Web3-related funding and the creation of a crypto task force in a February 22 budget. speech.
He added that Web3 has "great potential" and that the Special Administrative Region of China must keep pace with its "continuous development."
"We must keep up and seize this golden opportunity to spearhead the development of innovation."
Chan described that the funds would go towards accelerating the "development of the Web3 ecosystem" by organizing international seminars, promoting business cooperation and organizing "youth workshops."
He noted that a "large number" of companies are considering setting up shop in the city due to government cryptocurrency laws. Gate Group founder Dr. Han Lin called Hong Kong "a global strategic market" and a "hub" due to its "industry-leading regulatory regime."
Very excited about Hong Kong. Having obtained the TCSP license in Hong Kong, Gate Group is also preparing for a crypto license and adjusting Gate HK, a new entity designed to serve the growing Hong Kong crypto market. Pay attention.
—Lin Han (@han_gate) February 21, 2023
Hong Kong shared its plans on February 20 with a new licensing regime and a proposal to allow retail merchants access to licensed crypto platforms.
Due to the influx of business interest, Chan said he will "establish and lead a working group" on virtual asset development made up of members of financial regulators, market participants and "relevant policy offices."
Related: Hong Kong Securities Regulator Adds Crypto Staff for Industry Oversight
The working group would "provide recommendations on the sustainable and responsible development of the sector," according to Chan.
Hong Kong began its push to gain global crypto center status in October 2022 with the launch cryptocurrency friendly policy frameworks to regulate industry within the city.
Despite being a region of China, the city's special status allows for its own laws and government. Hong Kong's crypto push would seem to be in contrast to China's crypto banbut it is reported that officials in Beijing they are quietly receding the crypto ambitions of the region.
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