Hong Kong’s crypto market is gaining traction as local investors launch ProDigital Future, a $100 million fund aimed at early-stage Web3 companies oriented towards the regional market.
The fund has already raised $30 million during its half-year fundraising period and plans to hit its target by the end of 2023. ProDigital Future is led by Ben Ng, a partner at Hong Kong-based equity firm SAIF Partners, and Curt Shi, a tech investor from China. Sunwah Kingsway Capital Holdings and Golin International Group have already supported the fund.
Investors from Hong Kong, China, Australia, and Singapore, including family offices, have reportedly participated. ProDigital Future aims to be present in Australia, Singapore, Europe, and the United States while embracing Hong Kong’s policies.
While cautious about investing in crypto projects, ProDigital Future has already invested in six digital-asset projects, including metaverse company GigaSpace and One Future Football, a digital football league from Australia currently operating in stealth mode. In October 2022, the Hong Kong government floated the idea of introducing its own bill to regulate crypto.
On February 20, the Securities and Futures Commission proposed a licensing regime for cryptocurrency exchanges that will take effect in June, requiring potential market players to meet prerequisites such as safe custody of assets, Know Your Customer, Anti-Money Laundering, and Combating the Financing of Terrorism regulations. The move signals a renewed push towards regulating the cryptocurrency industry in the region.
