Cryptocurrency exchange Gate.io is preparing to establish a foothold in Hong Kong following an anticipated infusion of $6.4 million (50 million Hong Kong dollars) by the local government into Web3 in accordance with the city's 2023-24 budget.
In order to launch "Gate HK," Gate Group stated on February 22 that it would apply for a crypto license in Hong Kong. In August 2022, the company's local affiliate, Hippo Financial Services, was granted permission to provide custody services for virtual assets.
Paul Chan, the financial secretary for Hong Kong, promised funding for Web3 and the creation of a crypto task force in a budget statement on February 22. The Special Administrative Region of China must keep up with Web3's "constant development," he continued, noting that it has "great potential."
In order to speed the development of "the Web3 ecosystem," Chan detailed how the funds would be utilized to foster business collaboration, hold international conferences, and organize "workshops for young people."
He claimed that the city's cryptocurrency regulations are pushing a "large number" of companies to consider setting up shop there. Due to its "industry-leading regulatory framework," Dr. Han Lin, the founder of Gate Group, referred to HK as a "hub" and a "global strategic market."
Hong Kong Outlined Its Plans For New Licensing System
Hong Kong unveiled its ideas for a new licensing scheme and a suggestion on February 20 to allow regular traders access to licensed cryptocurrency platforms.
In response to the rise in corporate interest, Chan declared that he "will assemble and lead a task group" made up of officials from financial regulators, market participants, and "relevant policy bureaux" on the formation of virtual assets.
The task team "would give proposals on the sustainable and responsible development of the sector," Chan said.
In October 2022, Hong Kong started its efforts to establish itself as a major center for the cryptocurrency industry by enacting legislation that would allow the industry to operate locally under crypto-friendly regulatory frameworks.
Due to its special status, the city has its own laws and government even though it is a part of China. Although Hong Kong's crypto drive appears to be at odds with China's crypto ban, there are rumors that Beijing officials are covertly supporting the region's crypto objectives.