Hong Kong is actively looking to invest in the Web3 sector by re-establishing crypto businesses with more regulatory clarity, before, it was home to several crypto startups, including the now-defunct FTX. The special administrative region of China has also indicated its intention to legalize crypto retail trading and introduce a licensing regime for digital asset providers.
Hong Kong Plans to Spur Innovation and Growth in Web3 Sector
The companies are already responding positively to the city’s shift towards Web3-related projects. The department for foreign direct investment had received “expressions of interest” from over 80 virtual asset-related companies from mainland China and abroad in establishing a presence in Hong Kong. Moreover, KuCoin, is also interested in opening an office in the city.
Last month, the Financial Secretary of Hong Kong, Paul Chan, announces the city’s annual budget plan for 2023, dispensing US$6.37 million into the Web3 sector. The financial chief acknowledged the diverse opportunities presented within the Web3 sector and hence will allocate the reserve to organize major international seminars to facilitate cross-sectoral business prospects.
China’s Stance on Crypto
Meanwhile, China’s stance on crypto is rigorous and blunt as the People’s Bank of China has banned all cryptocurrency transactions citing the role of cryptocurrencies in facilitating financial crime as well as posing a growing risk to China’s financial system.
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