Cryptocurrency exchange Gate.io is poised to launch a presence in Hong Kong after the local government plans to inject $6.4 million (50 million Hong Kong dollars) into Web3 under the city’s 2023-24 budget.
Gate Group said on February 22 that it will apply for a crypto license in Hong Kong to allow it to start “Gate HK.” The company’s local company, Hippo Financial Services, obtained a license in August 2022 to provide virtual asset custodian services.
It comes as Hong Kong’s finance secretary, Paul Chan, announced Web3-related funding and the creation of a crypto task force in his February 22 budget speech.
He added that Web3 has “great potential” and China’s Special Administrative Regions should continue with “continuous development.”
“We must follow the times and seize this golden opportunity to lead the development of innovation.”
Chan outlined that the fund will accelerate the “development of the Web3 ecosystem” by organizing international seminars, promoting business cooperation and organizing “workshops for young people.”
He noted a “large number” of companies considering setting up shop in the city because of the government’s cryptocurrency laws. Founder of Gate Group, Dr. Han Lin, called Hong Kong a “global strategic market” and “hub” because of its “industry-leading regulatory regime.”
Very excited about Hong Kong. After obtaining the TCSP License in HK, Gate Group is also preparing the crypto license and fine tuning of Gate HK, a new entity designed to serve the ever-growing HK crypto market.
— Lin Han (@han_gate) February 21, 2023
Hong Kong shared its plans on February 20 with a new licensing regime and a proposal to allow retail traders to access licensed crypto platforms.
Due to the entry of business interests, Chan said that he “will create and lead a task force” on the development of virtual assets that includes members from financial regulators, market participants and “relevant policy bureaus.”
related: Hong Kong’s securities regulator is adding crypto personnel to oversee the industry
The task force will “provide recommendations on sustainable and responsible development of the sector” according to Chan.
Hong Kong begins its push to achieve status as a global crypto hub by October 2022 by launching a crypto-friendly policy framework to regulate the industry in the city.
Although it is a territory of China, the city’s special status allows for its own laws and government. Hong Kong’s crypto push appears to be different from China’s crypto ban, but it is reported that officials in Beijing are quietly supporting the region’s crypto ambitions.