will join Hong Kong after the city’s funding of $6.4 million to Web3

The inventor of Gate referred to Hong Kong as a “hub,” while the city’s finance secretary said that the area “must keep up” with Web3’s “great potential.” is preparing to build a presence in Hong Kong after the local government’s projected infusion of 50 million Hong Kong dollars ($6.4 million) into Web3 under the city’s budget for 2023-24.

Gate Group announced on February 22 that it would seek a crypto licence in Hong Kong to start “Gate HK.” Hippo Financial Services, the firm’s local subsidiary, obtained a licence to offer virtual asset custody services in August 2022.

In a budget statement on February 22, Hong Kong’s finance secretary, Paul Chan, promised Web3-related financing and the formation of a crypto task force.

The Special Administrative Region of China must keep pace with Web3’s “constant growth,” according to him.

We must stay current and grab this unique chance to lead innovative development. Chan said that the monies will be used to expedite “the Web3 ecosystem growth” by hosting international seminars, fostering commercial collaboration, and holding “workshops for youth.”

Due to the government’s cryptocurrency rules, he added that a “substantial number” of businesses are contemplating establishing operations in the city. Dr Han Lin, the founder of Gate Group, referred to Hong Kong as a “global important market” and a “hub” owing to its “industry-leading regulatory environment.”

Hong Kong revealed its intentions for a new licencing framework and retail trader access to regulated crypto platforms on February 20.

Chan said that he would “create and head a task group” on virtual asset development comprised of financial regulators, market players, and “relevant policy bureaus” due to the flood of corporate interest.

According to Chan, the task group will “offer suggestions on the responsible and sustainable growth of the industry.”

In October, Hong Kong launched crypto-friendly regulatory frameworks to govern the business inside the city, marking the beginning of its campaign to become a worldwide crypto powerhouse.

Although being a part of China, the city has its own laws and government due to its unique position. It would seem that Hong Kong’s crypto drive contrasts with China’s crypto prohibition it has been revealed that Beijing authorities are secretly supporting the region’s crypto goals.

Also Read: Canadian Authorities Reject Algorithmic Stablecoins