More than 80 giants want to establish a foothold in Hong Kong by June

On March 20, at the Web3 Investment Summit held in Hong Kong, Hui Ching-yu, Director of the Hong Kong Monetary Authority, said that since the Hong Kong government announced the "Policy Statement on the Development of Crypto Assets" in October 2022, as of February 2023 At the end of the month, more than 80 crypto-asset-related companies have expressed their intention to enter Hong Kong . Among them, 23 cryptocurrency companies have entered the Hong Kong market to conduct business, including cryptocurrency exchanges, blockchain infrastructure companies, and blockchain network security companies. , cryptocurrency wallet and payment company.

Regarding Hong Kong's "Policy Statement on the Development of Crypto-Assets", ChainDD has already analyzed it in depth in previous articles. This statement has also been reported by ChainDD before. For details, please refer to ChainDD's previous article: [ChainDD Exclusive] Hong Kong’s “Declaration”: The “Last Stand” of Encrypted Central City. ChainDD has also compiled specific application precautions for everyone. Please refer to ChainDD’s previous article [ChainDD Exclusive] The Crypto Asset Center is determined to win: Hong Kong Stablecoin Implementation License Application System. You need to pay attention to these matters when applying.

“Hong Kong is well-positioned to be a leading Web3 hub in Asia and beyond, and we take crypto assets and Web3 very seriously,” said Hui Zhengyu.

The license applications that will be opened in June this year were also reiterated at this meeting. Xu Zhengyu said: "By establishing a comprehensive and clear regulatory system, we hope that more high-quality VA companies will do business or seek development opportunities in Hong Kong."

Just last month, Hong Kong’s Securities and Futures Commission (SFC) proposed that Hong Kong should “allow all types of investors, including retail investors, to use trading services provided by licensed VA [virtual asset] trading platform operators. "

In fact, the regulatory structure for crypto companies in Hong Kong is taking shape. The licensing system for VA service providers will come into effect in June this year. In January this year, the HKMA shared its plans to regulate stablecoins. Subsequently, Hong Kong announced in the budget the establishment of a working group on VA development to explore future paths and opportunities.

Hong Kong’s Securities and Futures Commission (SFC) is now accepting feedback on the licensing scheme as part of a public consultation period that will run until March 31.

Digital economy is the backbone

Since last year, Hong Kong has begun to vigorously implement financial technology infrastructure construction and talent introduction policies, especially the Hong Kong Science Park and Digital Port. ChainDD learned from the Hong Kong Government News Network that Financial Secretary Paul Chan Mo-po delivered a series of related speeches at the Asia Pacific Loan Market Association Global Loan Market Summit on March 1, as well as its 2023-2024 budget meeting on February 22. Zhongdu revealed some recent developments in Hong Kong, and ChainDD summarized the recent developments in Hong Kong.

At present, Hong Kong has established a Digital Economy Development Committee. ChainDD understands that it will be chaired by Financial Secretary Paul Chan Mo-po and will conduct in-depth research and exploration in four major areas, including studying the digital infrastructure needed to promote the development of the digital economy. Ensure convenient, efficient and safe transmission of cross-border data, as well as enterprise digital transformation and human resources support.

For example, in terms of enterprise digital transformation, the government will set aside NT$500 million for the Hong Kong Digital Port to launch a digital transformation support pilot program, providing funding on a one-to-one matching basis to assist small and medium-sized enterprises in applying ready-to-use basic digital solutions.

In terms of talent, under the policy that has become a dazzling global talent war last year, the Hong Kong SAR government recently announced the "Hong Kong Innovation and Technology Development Blueprint", which clearly proposes to enrich the innovation and technology talent resources, and plans to increase the number of employees in the innovation and technology industry from 2032 to 2032. The current number of about 45,000 has increased to no less than 100,000. Chief Executive of the Hong Kong Special Administrative Region Lee Ka-chiu announced, "For key industries, our talent policy has a series of 'tailor-made plans', including tax incentives, employee subsidies, living subsidies, etc. For example, companies need land, tax deductions, and even employees need to study. , finding a place to live, we have made corresponding arrangements for these." 

Especially in financial management, there are special green channels. ChainDD understands that although there are currently 10 major categories in the green channel list introduced by Hong Kong professionals, almost all of the branches and sub-categories of these major categories involve finance and technology.

But the main prospects are Web3 and financial technology. Chen Maobo said that although many people know Web3 through encrypted assets (VA), this technology and its applications have unlimited potential and will spare no effort to promote it.

In recent months, Hong Kong’s encryption industry summits have continued, which is due to Hong Kong’s comprehensive embrace policy. In February, Hong Kong announced an allocation of US$50 million to accelerate the development of the Web3 ecosystem by holding large-scale international seminars and other methods, allowing industries and enterprises to grasp cutting-edge developments and promote cross-border business cooperation. 

The impetus for All in: green tokenized bonds a big success

According to Chen Maobo’s speech, ChainDD learned that in mid-February 2023, Hong Kong had successfully issued tokenized green bonds and gained a lot. This is also one of the main driving forces for Hong Kong to continue its All in digital economy.

It is the first such bond issued by a global government. The Hong Kong SAR plans to continue to issue additional products in the next year and directly open purchase channels to the general public. Hong Kong will issue no less than US$50 billion of silver bonds and US$15 billion of retail green bonds in the next financial year. The US$15 billion of bonds are open to the public for bond subscription. 

There are currently more than 100 green technology companies in the Hong Kong Science Park, some of which have attracted overseas investment and captured the market. And Hong Kong will issue about $65 billion worth of bonds annually over the next five years, under an expanded green bond and a new infrastructure bond program. 

In fact, ChainDD has repeatedly demonstrated the proposition of whether Hong Kong can become the encryption center of Asia and even the world. Before the FTX thunderstorm, and even before the huge bank storm in the United States, it can be said to be a bit difficult. For example, ChainDD’s previous article [ChainDD Exclusive] Japan and South Korea are in chaos, Singapore has disarmed, and Hong Kong is waiting for an opportunity to fight for encryption. It has been mentioned among financial centers that places like Japan, South Korea, Singapore, and the United States still have certain competitiveness. However, given the industry environment in March 2023, Hong Kong still has such vigorous promotion, and there is still a good chance.

What deserves attention is the advancement of Hong Kong’s digital Hong Kong dollar plan, and in terms of regulations, the Hong Kong Monetary Authority is also formulating a set of stable currency regulations, which are expected to take effect in 2024. For details, please pay attention to the ChainDD Policy Supervision Channel, which will bring you global First-hand information and in-depth interpretation of regulations related to the encryption industry in various countries.