The relaxation of Hong Kong’s virtual assets regulatory policies in establishing a supporting business environment has attracted crypto firms to the region. The Secretary for Financial Services and the Treasury, Christian Hui has confirmed the development. During a speech in the region today, Hui contended that Hong Kong has been gaining interest from numerous cryptocurrency businesses across the globe since last October.
Furthermore, the Secretary attributed the progress to the release of the Hong Kong administration policy statement regarding Virtual Asset Development last year. According to Hui, so far, 80 digital asset companies from Mainland China and other renowned countries across the globe are aiming to extend their business presence in Hong Kong. Additionally, about 23 virtual asset firms have expressed their interest in establishing their businesses in the region, the Secretary revealed.
Christian Hui during the speech provided more insights into the type of service the firms in question provide. The Secretary explained that the firms provide services such as digital assets exchange, blockchain infrastructure, and blockchain network security. More so, Hui illuminated how the firms are working to know more about the implementation level of Hong Kong’s virtual asset policy, regulatory stipulations, visa process for members of staff, and support mechanisms for the virtual assets and Web3 space.
Accordingly, the Secretary said the region is in a good position to become the best hub for Web3 businesses. Hui revealed that the release of the policy statement has helped the region. Additionally, the Secretary said the move is already providing the desired result. Christian Hui added that the presence of more than 800 fintech firms in Hong Kong will as well complement the increasing effort.
Hong Kong’s support to the growth of digital assets in its region
Meanwhile, the Secretary provided more insights into the region’s effort in emerging as a progressive hub for virtual asset innovations. Sui indicated that by June 2023, the Hong Kong Government will create a licensing regime for digital asset businesses. Thus, Hui registered faith in the licensing regime that it will attract more digital asset service providers to Hong Kong.
Lately, the region has made major headlines for its supporting approach to the digital assets space. According to Binbits, On February 22, 2023, the region announced its intention to allocate $6.3 million for Web3 advancement. The development emanated shortly after the Hong Kong administration revealed that it will allow firms to provide crypto services in the region. Consequently, the announcement birthed firms like Huobi and Bitget to seek regulatory approval for crypto services in Hong Kong.