A report from the pro-crypto secretary of financial services in Hong Kong, Christopher Hui, revealed that the country is expediting to become an international crypto hub. Hui issued his address on March 21 at the 2023 Web3 investment summit hosted by Aspen Digital.
He argued that the regulators had received over 80 applications from crypto firms seeking regulatory approval to enter the Hong Kong market. In his statement, Hui mentioned that most companies planning to set up regional offices in Hong Kong included firms operating in the crypto and blockchain industry.
Importance of Web3 Investment Summit
At the summit, which hosted more than 2000 participants, Hui stated that Hong Kong is at the central point of becoming a burgeoning center for Web3 across the globe. Hui supported the majority’s opinion that Hong Kong is set to become a center for crypto development and innovation.
Before the Covid-19 pandemic, the crypto-friendly country had a thriving economy that attracted large foreign investors in the fintech sector. The after-effect of the Covid-19 pandemic, and the spiking appetite of the regulators to reign in the crypto industry, prompted most firms to exit the Hong Kong market.
Afterward, the collapse of the Bahamian crypto exchange pulled down the Hong Kong crypto market. This created uncertainty in the Hong Kong market prompting market critics to hit back at the regulators.
Investors in the region argued that a poor regulatory framework triggered the economic crisis in Hong Kong. The current speculation obliged the regulators and legislators to team up to develop goals for the county’s Web3 project.
Elsewhere, finance secretary Paul Chan argued that Web3 has endless opportunities to boost the Hong Kong economy. Chan urged the crypto community to explore the available options in Web3. He revealed plans to collaborate with other legislators to create a team of virtual asset developers.
Adoption of Crypto Regulations in Hong Kong
Per the report, the attempt to push for the widespread adoption of cryptos has prompted the legislators in Hong Kong to hold consultation programs more regularly to allow retail investors to draw more benefits from digital space.
An update captured by reporters from Nikkei Asia revealed that the friendly crypto regulations in Hong Kong had inspired more Chinese-based crypto firms to gain interest in the Hong Kong market. The reporters stated that most traditional banks planning to enter the Hong Kong markets plan to integrate crypto-related features to enable the consumer to trade their digital assets.
Nonetheless, a regulator from the Hong Kong Securities and Futures Commission (SFC) pushed for adopting friendly policies to attract a large audience of retail investors. The SFC official demanded that digital service providers should uphold conformity and improve the accessibility of digital asset services and products.