Hong Kong is a special administrative region for the Republic Of China with over 7.5 million residents drawn from various countries globally. Being the most densely populated region in the world, Hon Kong has managed to be the top travel destination in Asia. Other top hubs in the continent Include Singapore and Dubai that have already overtaken Hong Kong as Asia’s crypto hubs. Around 90% of Hong Kong’s GDP(Gross Domestic Product) is due to its massive service industry that includes financial and insurance services, Information and Communication, accommodation, administrative and social services and import/export services among others. This lucrative service market has managed to attract a lot of firms that deal in real estate, construction, Information Technology, insurance and banking. All these attributes have laid ground work for Hong Kong’s crypto web3 and blockchain industries as the service industry is the major consumer of blockchain solutions and technologies.
The conducive financial environment in Hong Kong has captured the interests of virtual asset firms in the crypto industry who are looking to tap into this market. According to reports from Christian Hui, more than 80 crypto affiliated firms are looking to establish operations in the city. Christian Hui is Hong Kong’s Financial Services and Treasury secretary. Hong Kong is now on the path to become a leading global crypto hub as it provides a more friendly ecosystem to crypto firms. Most importantly, it has friendly regulations that are aimed at attracting firms and investors to spearhead the journey towards reclaiming its place in the global crypto market.
The Financial hub has attracted an influx of firms dealing in different sub sets of the crypto industry. The firms provide blockchain-based solutions to problems across many sectors. They range from virtual and digital asset trading platforms, blockchain infrastructure providers, crypto network security firms, cryptocurrency wallets as well as crypto powered payment solutions providers. Some of the firms also deal in other web3 related sectors and are drawn from countries like China, nations from European Union, Canada, Singapore, the Us and the UK probably because of an hostile environment in those nations. The firms, more than 80, have been looking into Hong Kong’s regulations and policy on blockchain and the web3 sector as well as visa requirements for admission into the city.
Hong Kong was once a crypto hotspot but due to it ambiguity in crypto regulations, it was overtaken by Dubai and Singapore. The government however, towards the end of 2022, released a crypto policy statement that declared its stand on the blockchain industry and virtual assets. The adoption of amore friendly policy has since started attracting crypto companies again. Hong Kong has a commission, SFC(Securities and Futures Commission), that allows crypto platforms to register under it and publicly trade on licensed exchanges. The government had also prior to this, allowed Bitcoin and Ethereum to be publicly traded on exchanges. Apart from that, Hong Kong has allocated a budget of $6.4 million to support the web3 sector in the city. The recent commitment from the government is set to lure crypto investors back into the city and make Hong Kong a crypto world with global influence.
