Hong Kong to Start Regulating Crypto in June 2023, 80 Companies Want to Join

Christian
Hui, the Secretary for Financial Services and the Treasury in Hong Kong, was
one of the speakers at the Aspen Digital Web 3 Investment Summit on 20 March
2023. During his speech, which focused on building the position of China’s
Special Administrative Region as a leader in the Web3 revolution, he revealed
that since October last year, more than 80 foreign and Mainland China crypto
companies had expressed interest in establishing a branch in Hong Kong and
obtaining local licenses.Hong Kong Attracts
Cryptocurrency CompaniesIn October
last year, Hong Kong published <a href=”https://www.financemagnates.com/cryptocurrency/hong-kong-set-to-legalize-crypto/” target=”_blank” rel=”follow”>a statement on the cryptocurrency market regulation</a>, which indicated that it wants to apply the same laws to crypto exchanges as it does to traditional finance companies. Between then and the end
of February 2023, a sizable number of domestic and international firms expressed their interest in having a presence in Hong Kong. 23 of the
80 mentioned are already working to build their local presence, including
cryptocurrency exchanges, blockchain infrastructure companies or cryptocurrency
network security providers.”As of
end-February 2023, Invest Hong Kong has received expressions of interest from
over 80 virtual asset-related Mainland and foreign companies in establishing
their presence in Hong Kong. These companies included VA exchanges, blockchain
infrastructure companies, blockchain network security companies, virtual
currency wallets and payment companies, as well as other projects on building
the Web3 ecosystem,” Hui said during the conference.<blockquote class=”twitter-tweet”>Christopher Hui, Secretary for Financial Services and the Treasury Bureau, delivers the opening keynote and reinforces HK government’s vision to develop the virtual asset sector in Hong Kong.He mentions Web 3 presents a paradigm shift to the internet era. <a href=”https://t.co/9MGkWOCj0O”>pic.twitter.com/9MGkWOCj0O</a>— Everest Ventures Group (EVG) (@EVG_Ventures) <a href=”https://twitter.com/EVG_Ventures/status/1637632164601942016?ref_src=twsrc%5Etfw”>March 20, 2023</a></blockquote>Hong Kong
to Regulate Cryptocurrencies from June 2023The
Secretary for Financial Services and the Treasury acknowledged that <a href=”https://www.financemagnates.com/cryptocurrency/hong-kongs-new-crypto-licensing-regime-a-boon-or-bane-for-investors/” target=”_blank” rel=”follow”>regulations
planned since last year</a> to establish a licensing regime for the virtual asset
(VA) service providers should come into effect in June 2023, within the next
three months.”Through
the establishment of a comprehensive and clear regulatory system, we are
expecting more quality VA enterprises to set up businesses in Hong Kong or to
seek development opportunities in Hong Kong,” Hui added.In addition, Hui recalled that the Hong Kong Monetary Authority (HKMA) is working on stablecoin
regulations, which are expected to come into effect in 2024. In addition to the
work being carried out by the HKMA, Hong Kong wants to implement the
ability <a href=”https://www.financemagnates.com/cryptocurrency/hong-kongs-sfc-consults-on-allowing-retail-traders-to-trade-crypto/” target=”_blank” rel=”follow”>to offer cryptocurrency exchange-traded funds</a> (ETFs) to retail
investors. Hong Kong
has earmarked $50 million in its latest budget to develop the web3 ecosystem
and <a href=”https://www.financemagnates.com/cryptocurrency/hong-kong-and-singapore-open-to-crypto/” target=”_blank” rel=”follow”>to build its presence in the virtual assets world </a>by organizing conferences
and attracting companies from the sector.”While
the Government will strive to cultivate a Web3-friendly environment for the
industry to thrive, we also count on all of you to make best use of your
expertise and develop in Hong Kong,” Hui concluded his speech.