Hong Kong Is Still A Good Land For Web3 Development After China’s Opposition

Key Points:

• Hong Kong is now embracing cryptocurrency enterprises once again, although with more regulatory certainty.
• Virtual asset-related companies from both China and abroad are establishing a presence in Hong Kong.
• This is currently a potential piece to develop the Web3 and crypto industry.

According to Global Village Space, Hong Kong is once again inviting crypto firms, but with greater regulatory certainty.

Hong Kong stated its retail plan to legalize crypto trading and implement a licensing scheme for digital asset providers during its government-backed fintech week in late 2020.

The city announced proposed laws in February 2021 that would enable private investors to trade some major cryptocurrencies beginning June 1.

According to the article, the region has had a rocky relationship with cryptocurrency throughout the years. Prior to China’s prohibition on all cryptocurrency-related activity in 2021, Hong Kong was home to numerous crypto businesses, notably FTX, which relocated to the Bahamas after the ban.

As of February, the department for foreign direct investment has received expressions of interest in establishing a presence in Hong Kong from over 80 virtual asset-related enterprises from both mainland China and internationally. One of them is KuCoin.

This demonstrates that businesses are increasingly shifting their growth to a more favorable climate.

Although these developments are exciting for some, others wonder whether the region provides the necessary circumstances for the growth of all types of web3 organizations and enterprises.

With bouts of political turmoil and rigorous COVID rules, Hong Kong’s attraction as a springboard linking China and the rest of the globe has waned. Hong Kong, on the other hand, remains a crucial participant in the global economy, and its significance cannot be emphasized.

The change in the regions stance toward cryptocurrency is a big step for the sector. The city’s move to allow crypto retail trading and implement a licensing scheme for digital asset providers would surely entice additional enterprises to relocate to the area.

The Securities and Futures Commission of Hong Kong recommended a new licensing system centered on investor protection in February.

As Coincu reported, Bybit, one of the major bitcoin derivatives exchanges located in Dubai, announced intentions to establish its primary Asian operation in Hong Kong, as well as a division of the research, development, and marketing team.

Hong Kong is now regarded as a golden land for the growth of bitcoin enterprises across the globe. Global crypto supremacy ambitions for the region are now in the works.

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Harold

Coincu News