Cryptocurrency exchange Gate.io is preparing to establish a foothold in Hong Kong after the local government revealed its projected $6.4 million capital injection into Web3 under the city’s 2023–24 budget.
On February 22, Gate Group announced that it would apply for a crypto licence in Hong Kong so that it could introduce “Gate HK.” In August 2022, the company’s local subsidiary, Hippo Financial Services, received authorization to offer custodial services for virtual assets.
The city’s financial secretary, Paul Chan, announced the funding of Web3 and the formation of a crypto task force during a budget statement on February 22. He believes that the Special Administrative Region of China must keep up with Web3’s “continuous development” and that he sees “huge potential” in the technology.
Chan explained how the monies would be used to promote business collaboration, host international conferences, and set up workshops for the youth in order to hasten the creation of the Web3 ecosystem. The financial secretary stated that Hong Kong’s recent crypto laws have led to a considerable number of companies to consider setting up base in the city.
Dr. Han Lin, the founder of Gate Group, dubbed the city “a global strategic market” and a “hub” for its “industry-leading regulatory regime.” The founder tweeted that the company will be establishing a new entity specifically designed to serve Hong Kong’s budding crypto market.
One of the many companies that have applied for a license to operate in Hong Kong was major crypto exchange Huobi. According to Huobi advisor Justin Sun, they will launch a new exchange based in Hong Kong that serves the demands of local institutional investors and high net worth individuals.
[Read more: China May be Supporting Hong Kong’s Crypto Ambitions: Reports]
