Venture capital firm backed by Richard Li signals potential for crypto in Hong Kong as US cracks down

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(Bloomberg) – CMCC Global, a venture capital firm focused on blockchain technology, said the US crackdown on digital assets is opening up opportunities for Hong Kong as the city strives to become a hub of cryptography.

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The United States is shooting itself in the foot and giving other regions a chance to woo innovative companies, CMCC co-founder Charlie Morris said in an interview with Bloomberg Television that aired on Tuesday.

We see places like Hong Kong having a real opportunity right now to bring these businesses and entrepreneurs to the city, Morris added.

Hong Kong plans to let retail investors trade major tokens like Bitcoin and Ether in a new licensing regime for virtual asset service providers scheduled for June 1. the asset rout and the collapse of the FTX exchange.

Launch of the fund

CMCC is launching a $100 million fund to invest in startups focused on blockchain projects. The targets are Series A and Series B stage companies both in its Hong Kong base and further afield.

There are a lot of innovations coming out of Asia, said co-founder Martin Baumann. There is plenty of capital waiting for the right entry valuations to pull the trigger.

Baumann and Morris own a majority stake in CMCC, while Hong Kong tycoon Richard Li and Gemini Trust Co founders Cameron and Tyler Winklevoss are investors in its holding entity.

Venture capitalists around the world have continued to pull out of crypto this year after the 2022 price crash, a series of bankruptcies and the scandal that enveloped FTX, whose co-founder Sam Bankman-Fried is awaiting trial.

Private funding for crypto startups in the first quarter of this year plunged to its lowest level since 2020, according to data from researcher PitchBook.

The story continues

Last month, Swiss group Syz said it was joining CMCC Global in creating a fund of at least $50 million to invest in crypto-focused hedge funds.

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