Gate Group, the parent company of crypto exchange Gate.io, is the latest to apply for a license in Hong Kong. The company joins Huobi Global, OKX, and Bitget, seeking approval in the regime due to its crypto-friendly policy. Gate.io decided Hong Kong’s finance secretary, Paul Chan, confirmed the allocation of $6.4 million for Web3 development in his annual budget speech for 2023-2024.
Almost all jurisdictions have restructured crypto regulation after FTX. In this killing, many regulators introduced tougher crypto regulations, considering the mismanagement of crypto companies that recently filed for insolvency and caused investors to lose their funds, including FTX.
Meanwhile, Hong Kong welcomes crypto companies from all over the world to settle and make the city a crypto hub. First, Hong Kong proposed a new licensing regime that allows crypto exchanges to serve retail investors. The government has allocated 50 million Hong Kong dollars ($6.4 million) to accelerate the “development of the Web3 ecosystem.”
Crypto companies are queuing up to get the approval of the country’s Securities and Futures Commission (SFC) and seek the positive attitude of crypto regulators.
Gate.io Pushes Hong Kong Closer to Milestone
Speaking in his budget speech, the finance secretary added:
Cyberport created Web3 [email protected] earlier this year. I will allocate $50 million to speed up the development of the Web3 ecosystem by, among other things, organizing major international seminars, so that industry and companies can better grasp the development of borders and to promote cross-sectoral business cooperation, as well as managing the borders. various workshops for young people.
The license, if approved, will allow Gate Group to create a new crypto exchange Gate HK. Another local company, Hippo Financial Services, obtained a TCSP license in August to provide virtual asset custody services.
Besides allocating the budget for the 3-city Web space, Paul Chan also announced plans to create a task force for the development of Virtual Assets. The team will include industry experts, relevant policy bureaus, and financial regulators to “navigate Web3 development in the right direction.”
Huobi is another crypto exchange that recently announced the move of its Asian headquarters from Singapore to Hong Kong. It also plans to create a new crypto exchange under the regime named Huobi Hong Kong.
The SFC recently called for a public consultation on its proposed licensing regime. The main point will focus on whether crypto exchanges should serve retail investors. The regulator will also discuss the measures to be applied to ensure investor protection. The new licensing regime is expected to take effect in June 2023.
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