Hong Kong is doing its best to provide an appropriate amount of supervision to the crypto market in order to release the potential of technologies like Web3.



The government of Hong Kong remains committed to the development of cryptocurrency structure despite the ongoing industry crisis.

According to Hong Kong’s financial secretary Paul Chan, the local government and controllers are open to collaboration with crypto and fintech startups in 2023.  

Speaking at an event hosted by the state- run incubator Cyberport, Chan declared that Hong Kong has become a foundation connecting high quality virtual asset  enterprises, the public broadcasting service Radio Television Hong Kong( RTHK) reported on Jan 9.   

The financial secretary said that the Hong Kong government has  took lots of requests to set up global headquarters in Hong Kong from crypto- related  enterprises over the past two months. A lot of industry  enterprises have also expressed willingness to expand operations in Hong Kong or to go public on original exchanges, Chan added.  

According to the functionary, Hong Kong is doing its stylish to  give an applicable amount of supervision to the crypto market in order to release the  eventuality of technologies like Web3.   

He mentioned that Hong Kong lawmakers passed legislation to set up a licensing system for virtual asset service providers in December. The new nonsupervisory  frame is designed to  give the same degree of market recognition to cryptocurrency exchanges as the one that's  presently applicable to traditional  fiscal institutions. 

At the event, Chen also reportedly pointed out that Hong Kong officials and controllers are conducting a number of pilot projects to test out potential advantages of virtual assets and explore affiliated  operations. One of the  enterprise includes  allocation of tokenized green bonds by the Hong Kong government for subscription by institutional investors, he noted.   

Related Hong Kong lawmaker wants to turn CBDC into stablecoin featuring DeFi 

Hong Kong has been gradationally reaffirming itspro-crypto stance over the  once time,  getting the most crypto-ready country in 2022.   

In mid-December, Hong Kong launched its first two exchange- traded funds( ETF) for cryptocurrency futures, which raised over$ 70 million ahead of debut. The event came soon after the head of Hong Kong’s Securities and Futures Commission  released in October that Hong Kong is willing to distinguish its crypto regulation approach from the Chinese crypto ban enforced in 2021. 

(HELEN PARTZ, Cointelegraph, 2023)