• Hong Kong is becoming a crypto hub, with over 80 virtual asset companies seeking to establish their businesses in the city.
• The Financial Secretary of Hong Kong reports that they have created the right platform for cryptocurrency with their Virtual Asset Development Policy.
• Companies interested in establishing a presence are drawn to understand the policy’s implementation details and regulatory and visa requirements for talent admission.
Hong Kong Becoming a Crypto Hub
Hong Kong, an administrative region of China, has been gradually expanding its crypto industry. Positioning it as a prominent hub for crypto and Web3 interactions, the city has attracted several crypto firms to expand their business into the region. According to Financial Secretary Christian Hui, more than 80 virtual assets companies have expressed interest in establishing a presence since October 2022.
Virtual Asset Development Policy
The government of Hong Kong created the right platform for cryptocurrency with its Virtual Asset Development Policy in October 2022. This plan sets out comprehensive and transparent regulations for the city’s crypto sector and will move towards licensing regime for virtual assets service providers by June 2023. Companies interested in understanding more about this policy can get information on implementation details, support measures, and regulatory/visa requirements for talent admission.
Firms Establishing Subsidiary Businesses
Hui reported that 23 firms are planning to launch subsidiary businesses in Hong Kong; these include blockchain infrastructure firms, blockchain network security companies, and virtual asset (VA) exchanges. The secretary mentioned that most of these firms are keenly interested in understanding the Virtual Asset Development policy before making any moves towards establishment of their business within the city limits.
Financial Secretary’s Speech
Christian Hui made these statements during his speech at Aspen Digital Web3 Investment Summit on March 20th 2021. He highlighted how attractive Hong Kong has become due to its development related to cryptos and encouraged other firms to join this growing list of investors who want to make use of this market potential here in Hong Kong.
With its adoption-friendly laws regarding cryptocurrencies and dedicated efforts towards creating an enabling environment for such enterprises, it is no surprise that Hong Kong is seeing such high demand from those looking at setting up shop here or expanding their existing operations . It remains to be seen what impact this influx will have on both local economy as well as global cryptocurrency markets going forward