Hong Kong’s Crypto License Gold Rush Leaves Job Seekers Empty-Handed

Key Points:

• Hong Kong crypto firms prepping entry with excitement, but no significant hires yet.
• Talent squeeze expected as Web3 companies wait for license approvals.
• Crypto firms may need to move headquarters to pro-crypto jurisdiction to fill key roles.

According to recruitment executives, despite the excitement surrounding crypto firms’ entry into Hong Kong, there have been no in-country hires so far.

On June 1, about 150 firms applied for a local crypto license that allows them to operate a crypto trading platform in the region. Some firms have even reportedly spent up to $25 million to acquire one. Sue Wei, managing director of major recruitment firm Hays, that while exchanges have been looking to establish a base in Hong Kong, the industry’s hiring needs are currently “light.” However, she anticipates that as many Web3 companies continue to grow and mature, there will be an increase in job openings.

Wei also mentioned a significant decrease in requests for recruiting technical talent since the dip in the crypto market. She said that when talent was laid off en masse, some people became hesitant to work at a crypto company due to the business’s unstable nature, which primarily relies on the prices of crypto. Similarly, founder of crypto recruiter Cryptorecruit, Neil Dundon, said he has not noticed much activity in Hong Kong. Although he thinks the market has bottomed out, he expects it to start trending upward from now on. Olga Yung, managing director of Michael Page Hong Kong, stated that she has yet to see a significant increase in people seeking jobs in Web3, despite the government’s recent push. However, Yung has noticed a slight uptick in Web3 firms seeking legal and compliance hires in mid to late Q2 2023.

Looking ahead, Kevin Gibson, founder of Web3 recruitment firm Proof of Search, believes that it might take six months for crypto talent to surge into the region as companies wait for license approvals. Gibson explained that a lot of specialist talent has left Hong Kong in recent years, and the local talent pool is thin. Therefore, companies that have landed in Hong Kong will find themselves in an extreme war for talent. Setting up in Hong Kong requires full-time positions for key roles. Gibson thinks that Web3 companies will probably look to move their headquarters to a pro-crypto jurisdiction if things go according to plan.

The latest data shows a negative population growth rate in Hong Kong since 2020, indicating that attracting talent will be challenging. However, employment stats for Q1 2023 show that the number of vacancies increased by almost 38% compared to the same time last year. Yung added the main challenge is attracting talent with an interest in these sectors because many candidates are risk-averse given the current market sentiment. On the other hand, Neil Tan, chair of the FinTech Association of Hong Kong, said he has met several people who recently switched over from TradFi to crypto. Tan stated that many people were directly approached by crypto firms, while others used sites such as LinkedIn to find roles. He added that “TradFi keeps shedding headcount every year or two,” so the stability is not necessarily as attractive as it was before.

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