Cryptocurrency trading platform Gate.io is preparing to establish itself in Hong Kong following the cash injection of US$6.4 million (HK$50 million) planned by the local government for Web3 under the city’s budget for 2023-24.
Gate Group said on Feb. 22 that it will apply for a cryptocurrency license in Hong Kong that will allow it to launch Gate HK. The firm’s local company, Hippo Financial Services, obtained a license in August 2022 to provide custody services for virtual assets.
This comes as Hong Kong’s Finance Secretary, Paul Chan, announced funding related to Web3 and the creation of a cryptocurrency working group in a budget speech delivered on February 22.
He added that Web3 has “enormous potential” and that the Special Administrative Region of China should continue its “continuous development”.
“We must keep up with the times and seize this golden opportunity to spearhead the development of innovation.”
Chan outlined that the funds would go towards accelerating “the development of the Web3 ecosystem” by organizing international seminars, fostering business cooperation and organizing “workshops for young people”.
He noted that a “large number” of companies are considering setting up shop in the city due to government laws on cryptocurrency. The founder of the Gate Group, the Dr Han Lin, it called Hong Kong a “global strategic market” and “powerhouse” due to its “industry-leading regulatory regime.”
Very excited about Hong Kong. Having obtained the TCSP License in HK, Gate Group is also preparing for a crypto license and fine tuning Gate HK, a new entity tailored to serve HK’s growing crypto market, stay tuned.
—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 cryptocurrency platforms.
Due to the influx of commercial interest, Chan said that “will establish and lead a working group” on the development of virtual assets composed of members of financial regulators, market participants and “the relevant political offices”.
According to Chan, the working group “will formulate recommendations on the sustainable and responsible development of the sector”.
Hong Kong began its push to gain global cryptocurrency hub status in October 2022 by launching cryptocurrency-friendly policy frameworks to regulate industry within the city.
Despite being a region of China, the city’s special status allows it to have its own laws and governance. Hong Kong’s push into cryptocurrencies appears to be in contrast to the ban on cryptocurrencies in china, but it has been reported that the authorities of Beijing is quietly supporting the region’s ambitions in this area.
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