Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui, has announced that more than 80 foreign and Mainland China companies have expressed interest in establishing a Web3 company in Hong Kong, ahead of new crypto regulations that will take effect from June 2023.
The regulations will see virtual asset service providers regulated in the same way as traditional finance companies. This interest has been building since October last year when Hong Kong first announced its plans.
According to insiders with knowledge of the matter, it has been reported that over 23 Web3 companies are currently establishing their presence in Japan, also known as the “Land of the Rising Sun”. These companies are said to include a diverse range of players in the Web3 space, such as cryptocurrency exchanges, Web3 security firms, blockchain-based payment providers, and software companies focused on building robust blockchain infrastructure.
During a recent Aspen Digital Web3 summit held in Hong Kong, a statement by Hui further underscored the growing interest in Japan as a key market for Web3 innovation. It appears that these companies are eager to tap into the country’s tech-savvy population, favorable regulatory environment, and deep pool of engineering talent to expand their operations and grow their user base.
With the increasing adoption of Web3 technologies and the rise of decentralized finance (DeFi) in Japan, it’s clear that these companies are positioning themselves for success in one of the world’s most dynamic and exciting markets.
In a bold move to support the burgeoning Web3 industry, Hong Kong’s financial secretary, Paul Chan, recently announced during the 2023-2024 budget speech in February that the city has set aside a significant HK$50 million (equivalent to US$6.4 million) annually to fuel the growth of the Web3 ecosystem. This remarkable investment is a testament to Hong Kong’s commitment to remain at the forefront of innovation, as the city recognizes the transformative potential of Web3 technologies.
With this considerable budget allocation, Hong Kong is poised to become a thriving hub for Web3 innovation, attracting both domestic and international players in the space. The funding is expected to catalyze the development of cutting-edge Web3 projects, including decentralized applications (dApps), blockchain-based platforms, and smart contracts, among others. By fostering an environment of collaboration and innovation, Hong Kong is primed to play a leading role in shaping the future of Web3, and the global economy as a whole.