Over 80 Web3 firms in line to set up shop in HK, ahead of crypto regulations taking effect in June

Over 80 foreign and Mainland China companies have expressed their interest in establishing a Web3 company in Hong Kong, ahead of new crypto regulations that will take effect from June, said Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui.

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Fast facts

• The companies had expressed interest in opening a Hong Kong branch since October, when Hong Kong announced plans to regulate crypto exchanges the same way as traditional finance companies.

• The new regulations for virtual asset service providers will come into effect from June 2023.

• 23 of the 80 companies mentioned are already building their presence in Hong Kong. According to Hui at the Aspen Digital Web3 Investment Summit on Monday, these include crypto exchanges, Web3 security companies, blockchain payment companies, and software firms building blockchain infrastructure.

• Hui added that the Hong Kong Monetary Authority is also working on a set of stablecoin regulations, which are expected to take effect in 2024.

• Hong Kong has also allocated HK$50 million (US$6.4 million) in annual budget spending to the growth of the Web3 ecosystem, said Hong Kong’s financial secretary, Paul Chan, during the 2023-2024 budget speech in February.

See related article: Web3 isn’t just about money, it’s about equality and transparency, says Mysten Labs co-founder