Gate.io Will Launch In Hong Kong As The City Allocates $6.4M To Web3

Key Points:

• Following a projected infusion of $6.4 million (50 million Hong Kong dollars) by the local government into Web3 in accordance with the city’s 2023–24 budget, cryptocurrency exchange Gate.io is preparing to establish a presence in Hong Kong.
• In a budget statement on February 22, Hong Kong’s financial secretary, Paul Chan, pledged money for Web3 and the formation of a crypto task force.
• By introducing crypto-friendly legal frameworks to control the business locally in October 2022, Hong Kong began its effort to become recognized as a global hub for the cryptocurrency industry.

Following a projected infusion of $6.4 million (50 million Hong Kong dollars) by the local government into Web3 in accordance with the city’s 2023–24 budget, cryptocurrency exchange Gate.io is preparing to establish a presence in Hong Kong.

On February 22, Gate Group announced that it would apply for a crypto license in Hong Kong so that it could introduce “Gate HK.” In August 2022, the company’s local subsidiary, Hippo Financial Services, received authorization to offer custodial services for virtual assets.

In a budget statement on February 22, Hong Kong’s financial secretary, Paul Chan, pledged money for Web3 and the formation of a crypto task force.

He added Web3 has “huge potential” and the Special Administrative Region of China must keep pace with its “continuous development.”

“We must keep up with the times and seize this golden opportunity to spearhead innovation development.”

Chan explained how the money would be used to promote business collaboration, host international conferences, and set up “workshops for young people” to hasten the creation of “the Web3 ecosystem.”

The city’s cryptocurrency laws, he said, are causing a “huge number” of businesses to contemplate opening up shop there. Dr. Han Lin, the founder of Gate Group, referred to HK as a “hub” and a “global key market” because of its “industry-leading regulatory environment.”

Hong Kong revealed its plans for a new licensing system

On February 20, Hong Kong revealed its plans for a new licensing system and a suggestion to give ordinary traders access to authorized cryptocurrency platforms.

Chan announced that he “would organize and lead a task group” composed of representatives from financial regulators, market participants, and “relevant policy bureaux” on virtual asset creation in response to the surge in corporate interest.

According to Chan, the task force “would offer suggestions on the sustainable and responsible development of the sector.”

By introducing crypto-friendly legal frameworks to control the business locally in October 2022, Hong Kong began its effort to become recognized as a global hub for the cryptocurrency industry.

Despite being a part of China, the city has its own laws and government because of its unique status. Hong Kong’s crypto push would seem to be in contrast to China’s crypto ban, but it’s reported that officials in Beijing are discreetly backing the region’s crypto goals.

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