Hong Kong strives to offer a suitable level of oversight for the crypto market. The project aims to unlock the potential of technologies such as Web3.
Despite the current industry crisis sparked by the collapse of FTX, the Hong Kong government remains dedicated to developing cryptocurrency infrastructure. In 2023, the local government and authorities are ready to collaborate with crypto and fintech businesses, according to Hong Kong’s financial secretary Paul Chan.
Radio Television Hong Kong (RTHK) reported on January 9 that Chan is speaking at an event organized by the government-run incubator Cyberport. He stated that Hong Kong had become a hub for high-quality virtual asset enterprises.
The Hong Kong government has received numerous proposals from crypto-related companies in the past two months. According to the financial secretary, it will establish its worldwide headquarters in Hong Kong. Chan noted that many industry firms had desired to expand operations in Hong Kong or go public on local markets.
According to the official, Hong Kong is doing its utmost to provide the crypto market with adequate oversight. It will help unlock the potential of technologies like Web3.
In December, he said, Hong Kong legislators passed legislation establishing a licensing framework for virtual asset service providers. The new legal framework is intended to give cryptocurrency exchanges the same market recognition currently applicable to traditional financial institutions.
Chen allegedly stated at the event that Hong Kong officials and regulators are implementing various pilot projects. It examines the potential benefits of virtual assets and investigates related applications. He stated that one of the efforts involves the Hong Kong government issuing tokenized green bonds. It will serve as a subscription by institutional investors.
Hong Kong’s pro-crypto posture has been gradually reaffirmed over the past year. It will be the most crypto-ready nation in 2022. Mid-December saw the introduction of Hong Kong’s first two exchange-traded funds (ETFs) for bitcoin futures. It garnered more than $70 million in advance. The event occurred shortly after the head of Hong Kong’s Securities and Futures Commission indicated in October that Hong Kong is willing to differentiate its approach to crypto regulation from China’s 2021 crypto prohibition.