While speaking at the Web3 forum in Cyberport, Paul Chan, Hong Kong’s financial secretary, claimed that Hong Kong will continue to advance the growth of the Web 3 sector as it seeks to be the hub for the burgeoning industry.
According to a local news report, Paul Chan stated that Hong Kong is still committed to developing into a regional crypto hub and will try to attract new businesses worldwide.
Chan claimed that Hong Kong became a quality standing point for digital asset corporates as some crypto exchanges collapsed one after another, hinting at the FTX crash.
The financial secretary stated that the city’s strict regulatory structure meets international norms and standards and forbids free riders. Hong Kong is preparing to issue more licenses for digital asset trading firms.
According to Joseph Chan, Under Secretary for Financial Services and the Treasury, the city is also organizing a consultation on cryptocurrency platforms to examine the potential for retail participation in the industry, with information about this consultation to be revealed soon.
Last October, the Hong Kong government issued a policy statement on virtual assets. The government stated they are prepared to engage with international Virtual Assets exchanges and invite them to Hong Kong for potential new business relationships.
Chan said that some top startups and tech companies are now thinking about moving their headquarters or expanding to Hong Kong in response to the city’s policy declaration, without naming them.
“We have recently completed the legislative work for licensing virtual asset service providers and the new measure will come into effect in June,” Chan noted.
Chan added that under the new system, the norms for crypto exchanges in terms of preventing money laundering and upholding investor protection will be consistent with those for conventional financial institutions.