Hong Kong moves forward with crypto hub plans as tech companies and startups show interest: Financial Secretary

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Hong Kong will continue to push forward the development of the Web 3.0 industry as it aims to become a regional hub for the fledgling industry despite the series of crypto exchange meltdowns, Paul Chan, finance secretary of the Hong Kong, said on Monday. city.

See related article: Hong Kong lawmaker says e-HKD has potential to be a stablecoin

Fast facts

Chan told a Web3 event in Hong Kong that over the past two months, many leading companies and tech startups have contacted the government to discuss setting up an international headquarters or expanding their activities in the city, but he gave no names.

We recently completed legislative work for the licensing of virtual asset service providers and the new measure will come into force in June, Chan said, adding that under the new regime, requirements for exchanges to combat against money laundering and enforcing investor protection will be aligned. to the standards of traditional financial institutions.

Hong Kong is also hosting a number of pilot projects, including those examining cross-border use of e-HKD, the city’s central bank digital currency, and the tokenization of government-issued green bonds, it added. Chan.

Chan’s statement came after Hong Kong’s Legislative Council last month passed an amendment to the bill that includes a licensing regime for virtual asset service providers, which will come into effect on June 1.

Also last month, two exchange-traded funds that track cryptocurrency futures debuted on the Hong Kong Stock Exchange.

After China banned crypto transactions on the Chinese mainland in September 2021, Hong Kong released a series of crypto and blockchain policy documents in October 2022, announcing its attempts to reposition the city as a regional hub. of the crypto industry.

See Related Article: Hong Kong Financial Service Providers Gear Up For Retail Crypto Traders

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