will launch in Hong Kong as the city allocates $6.4M to Web3

While Gate’s founder referred to Hong Kong as a “hub,” the city’s financial secretary stated that the region “must keep up” with the “huge potential” of Web3.

Following the local government’s planned 50 million Hong Kong dollar ($6.4 million) cash injection into Web3 under the city’s 2023-24 budget, cryptocurrency exchange is preparing to launch a presence in Hong Kong.

On February 22, Gate Group announced that it will apply for a crypto licence in Hong Kong, allowing it to launch “Gate HK.” Hippo Financial Services, the firm’s local subsidiary, received a licence to provide virtual asset custodial services in August 2022.

It comes after Hong Kong’s financial secretary, Paul Chan, announced Web3-related funding and the formation of a crypto task force in a budget speech on February 22.

He went on to say that Web3 has “huge potential,” and that the Special Administrative Region of China must keep up with its “constant development.”

“We must keep up with the times and seize this golden opportunity to spearhead innovation development.”

The funds, according to Chan, will be used to accelerate “the Web3 ecosystem development” by organising international seminars, promoting business cooperation, and organising “workshops for young people.”

He stated that a “large number” of businesses are considering establishing themselves in the city as a result of the government’s cryptocurrency laws. Dr. Han Lin, the founder of Gate Group, described Hong Kong as a “global strategic market” and a “hub” due to its “industry-leading regulatory regime.”

On February 20, Hong Kong announced a new licencing regime and a proposal to allow retail traders access to licenced crypto platforms.

As a result of the increased business interest, Chan stated that he will “establish and lead a task force” on virtual asset development comprised of members from financial regulators, market participants, and “relevant policy bureaux.”

The task force would “provide recommendations on the sector’s sustainable and responsible development,” according to Chan.

In October, Hong Kong began its push to become a global crypto hub by introducing crypto-friendly policy frameworks to regulate the industry within the city.

Despite being a Chinese region, the city’s unique status allows it to have its own laws and governance. Although Hong Kong’s crypto push appears to contradict China’s crypto ban, it has been reported that officials in Beijing are quietly supporting the region’s crypto ambitions.

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