Will Hong Kong, which is expected to attract more than 80 crypto companies to go all in within half a year, become a global crypto hub?

More than 80 giants want to establish a foothold in Hong Kong before June

On March 20, at the Web3 Investment Summit held in Hong Kong, Xu Zhengyu, Director of the Hong Kong Monetary Authority, said that since the Hong Kong government announced the "Policy Statement on the Development of Crypto Assets" in October 2022, as of the end of February 2023, more than 80 crypto-asset-related companies have expressed their intention to enter Hong Kong , of which 23 cryptocurrency companies have entered the Hong Kong market to conduct business, including cryptocurrency exchanges, blockchain infrastructure companies, blockchain network security companies, cryptocurrency wallets and payment companies.

Regarding Hong Kong's "Policy Statement on the Development of Crypto Assets", ChainDD has already made an in-depth analysis in previous articles. ChainDD has also reported on this statement before. For details, please refer to ChainDD's previous article: [ChainDD Exclusive] Hong Kong's "Declaration": The "Back-to-Back Battle" of the Crypto Central City. ChainDD has also sorted out specific application precautions for everyone. Please refer to ChainDD's previous article [ChainDD Exclusive] Crypto Asset Center is determined to win: Hong Kong's stablecoin implementation license application system, and these matters need to be noted when applying.

“Hong Kong is well-positioned as a leading Web3 hub in Asia and beyond, and we take crypto assets and Web3 very seriously,” said Xu Zhengyu.

The license application, which will be open in June this year, was also reiterated at the meeting. Xu Zhengyu said: "By establishing a comprehensive and clear regulatory system, we hope that more high-quality VA companies will conduct business or seek development opportunities in Hong Kong."

Just last month, Hong Kong’s Securities and Futures Commission (SFC) proposed that Hong Kong should “allow all types of investors, including retail investors, to use trading services provided by licensed VA [virtual asset] trading platform operators.”

In fact, the regulatory structure for crypto businesses in Hong Kong is taking shape. The licensing system for VA service providers will take effect in June this year. In January this year, the HKMA shared its plans to regulate stablecoins. Subsequently, Hong Kong announced in the budget that it would set up a working group on VA development to explore future paths and opportunities.

Hong Kong’s Securities and Futures Commission (SFC) is now accepting feedback on the licensing plan as part of a public consultation period that will run until March 31.

Digital economy as the backbone

Since last year, Hong Kong has been vigorously promoting financial technology infrastructure construction and talent introduction policies, especially Hong Kong's Science Park and Digital Port. Liandede learned from the Hong Kong Government News Network that Financial Secretary Paul Chan made a series of relevant speeches at the Asia Pacific Loan Market Association Global Loan Market Summit on March 1, and his 2023-2024 Budget Meeting on February 22 revealed some recent developments in Hong Kong. Liandede has summarized the new developments in Hong Kong in recent days.

Hong Kong has now established a Digital Economy Development Committee. Liandede has learned that it will be chaired by Financial Secretary Paul Chan Mo-po and will conduct in-depth research and exploration in four major areas, including studying the digital infrastructure needed to promote the development of the digital economy, studying ways to ensure convenient, efficient and secure transmission of cross-border data, as well as enterprise digital transformation and human resources support.

For example, in terms of enterprise digital transformation, the government will set aside HK$500 million to allow the Hong Kong Cyberport to launch a pilot program to support digital transformation, providing funding on a one-to-one matching basis to assist small and medium-sized enterprises in applying ready-to-use basic digital solutions.

In terms of talent, under the policy that has become a highlight of the global talent war last year, the Hong Kong SAR government recently announced the "Hong Kong Innovation and Technology Development Blueprint", which clearly proposed to enrich the talent resources of innovation and technology, and plans to increase the number of people employed in the innovation and technology industry from the current approximately 45,000 to no less than 100,000 by 2032. Hong Kong SAR Chief Executive John Lee announced that "for key industries, our talent policy has a series of 'tailor-made plans', including tax incentives, employee subsidies, living subsidies, etc. For example, if a company needs land and tax deductions, or even if employees need to study and find a place to live, we have corresponding arrangements."

Especially in financial management, there are special green channels. Liandede learned that although there are currently 10 categories of green channel lists for the introduction of Hong Kong talents, the subcategories of these categories almost all involve finance and technology.

But the main focus is on Web3 and financial technology. Chan Mo-po said that although many people know Web3 through encrypted assets (VA), this technology and its applications have unlimited potential and he will spare no effort to promote it.

In recent months, the Hong Kong crypto industry summit has continued, thanks to Hong Kong's comprehensive embrace policy. In February, Hong Kong announced a grant of US$50 million to accelerate the development of the Web3 ecosystem through hosting large-scale international seminars, allowing industries and companies to grasp cutting-edge developments and promote cross-border business cooperation.

The driving force behind all-in: Green tokenized bonds are a huge success

According to Chan Mo-po's speech, ChainDD learned that in mid-February 2023, Hong Kong had successfully issued tokenized green bonds and reaped rich rewards. This is also one of the main driving forces for Hong Kong to continue to All in the digital economy.

This is the first bond of its kind issued by a government in the world. The Hong Kong SAR plans to continue issuing additional bonds in the next year and open up channels for purchase directly to the general public. Hong Kong will issue no less than US$50 billion of silver bonds and US$15 billion of retail green bonds in the next fiscal year. The US$15 billion bonds are open to the public for bond subscription.

There are now more than 100 green technology companies in the Hong Kong Science Park, some of which have attracted overseas investment and captured the market. In addition, Hong Kong will issue about US$65 billion worth of bonds each year in the next five years, including an expanded range of green bonds and a new infrastructure bond program.

In fact, ChainDD has argued many times whether Hong Kong can become the crypto center of Asia or even the world. Before the collapse of FTX, and even before the collapse of the largest American bank, it was a bit difficult. For example, in ChainDD’s previous article [ChainDD Exclusive] Japan and South Korea are in chaos, Singapore has surrendered, and Hong Kong is waiting for an opportunity to compete for the crypto financial center, it was mentioned that Japan, South Korea, Singapore, and the United States are still competitive. However, in the industry environment of March 2023, Hong Kong is still pushing forward so vigorously, and there is still a lot of opportunity.

It is worth noting that Hong Kong’s digital Hong Kong dollar plan is being promoted. In terms of regulations, the Hong Kong Monetary Authority is also formulating a set of stablecoin regulations, which are expected to take effect in 2024. For details, please pay attention to the ChainDD policy and regulatory channel, which will bring you first-hand information and in-depth interpretation of relevant regulations in the crypto industry in countries around the world.