Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/16782639741.18.jpeg)

## TL；DR
Hong Kong has budgeted HK$50 million to spearhead cryptocurrency investment in the country.

The investment as well as relevant legislation is likely to attract more web3 firms into the city.

Several big crypto firms such as <a href="/price/huobi-ht" target="_blank" class="blog_inner_link">Huobi</a> Global, ShucangCN and BSC Spartan Network have promised to invest in the city in the near future.

Mainland China might be using Hong Kong as a pilot programme for its future web3 economy.

## Introduction
Mainstream adoption of digital assets like cryptocurrencies and NFT is set to increase if the current emerging trends such as government injection of funds into the crypto sector and the introduction of crypto-friendly regulations continue. Hong Kong is one country that has set aside a reasonable amount of money  to expand its blockchain technology. This article will discuss Hong Kong’s current thrust in the blockchain industry.

## Hong Kong’s blockchain industry growth
In a show of confidence in the power of the blockchain, Hong Kong has unveiled HK$50 million to develop its web3 businesses in order to compete in the global digital economy. However, part of the funds will be used to establish crypto regulations which may increase confidence in Hong Kong’s blockchain infrastructure aimed at attracting web3 firms to launch their businesses in the city.

Related news: [Gate.io to enter Hong Kong following city’s $6.4M budget allocation to Web3](https://www.gate.io/de/blog_detail/2198/gate.io-to-enter-hong-kong-following-city-s-6.4m-budget-allocation-to-web3 "Gate.io to enter Hong Kong following city’s $6.4M budget allocation to Web3")

![](https://gimg2.gateimg.com/image/article/167826407310831678263809_.pic.jpg)
Hong Kong- Coindesk 

In the 2023-2024 budget speech, Paul Chan, the city’s Financial Secretary said, “The third generation Internet (Web3), currently in its start-up period, has the same huge potential.  We must keep up with the times and seize this golden opportunity to spearhead innovation development.”

He added, ““I will allocate $50 million to expedite the Web3 ecosystem development by, among other things, organizing major international seminars, to enable the industry and enterprises to better grasp frontier development and to promote cross-sectoral business co-operation, as well as arranging a wide array of workshops for young people.”

Read also: [Gate.io CEO Says Hong Kong May Become the New Crypto Mecca](https://www.gate.io/zh-tw/blog_detail/1730/gate-io-ceo-says-hong-kong-may-become-the-new-crypto-mecca "Gate.io CEO Says Hong Kong May Become the New Crypto Mecca")

In addition, Chan promised to establish a task force that would look into how best to spearhead web3 innovation in Hong Kong. One of the key aspirations of the city is to lure back crypto investors from mainland China who have relocated to other countries such as Singapore. Among the expected investors is Justin Sun who indicated through a tweet that he will soon relocate to Hong Kong.

Sun also indicated that the current stance shows the Chinese government support for web3 in Hong Kong. He [said](https://www.bangkokpost.com/business/2511770/beijing-quietly-backing-hk-crypto-plans "said"), “The changing attitude of the Hong Kong government towards crypto signals a nod from the Chinese central government granting pilot status to HK for some forward-looking experiments on how crypto can be best adopted and localised for the huge Chinese market at large. ”

There is no doubt that the $50 million set aside for developing the blockchain sector in the country presents a “golden opportunity” for firms that aim to [establish their crypto projects in Hong Kong](https://www.gate.io/blog_detail/1745/hong-kong-new-crypto-policy-will-spring-come-to-hong-kong-again "establish their crypto projects in Hong Kong").  

Sun, who is a World Trade Organisation representative, added that there are several large crypto firms like <a href="/price/huobi-ht" target="_blank" class="blog_inner_link">Huobi</a> Global that are willing to come to the city. Aside from crypto exchanges, market makers and hedge funds are likely to flock to Hong Kong as well.

There is also high expectation that NFT and metaverse firms are likely to come to Hong. As an example, ShucangCN, a leading NFT firm, [told](https://forkast.news/china-nft-platforms-expand-into-hong-kong-in-face-of-compliance-risks-on-mainland/ "told") Forkast that it aims to open a branch in Hong Kong. Another big crypto player that has promised to open a branch in Hong Kong is BSN Spartan Network, a Chinese blockchain which is currently operating outside China.

## Hong Kong’s crypto regulation
Apart from the $50 million investment in web3, Hong Kong is also working on establishing crypto friendly [regulations](https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2022/20221207e1.pdf "regulations") in the country. Recently, the Hong Kong's Securities and Futures Commission (SFC) published regulatory guidelines for virtual asset trading platforms. However, it has asked for feedback from the public

![](https://gimg2.gateimg.com/image/article/167826425410841678263820_.pic.jpg)
Crypto regulation- Thenewscrypto 

Part of the legislation will establish the requirements for licensing crypto trading platforms and registration of the digital assets. The proposed regulations will be effective from June this year, meaning that firms in the affected sector should comply with law by that time. The SFC will also check on the liquidity of the involved entities like exchanges.

Read also: [Gate.io to Connect with Local Web3 Community at BlockMountain 2023](https://www.gate.io/pt-br/blog_detail/2207/gateio-to-connect-with-local-web3-community-at-blockmountain-2023 "Gate.io to Connect with Local Web3 Community at BlockMountain 2023")

In addition, the proposed regulations will have a clause that prohibits flighting misleading crypto advertisements. As a result, there will be penalties for individuals and firms that carry out fraudulent transactions. For instance, offenders may be liable to a fine of $10,000,000 and a jail term of 10 years.

## Is Hong Kong a Pilot Programme for Mainland China?
Several analysts have pointed out that the friendly stance which Hong Kong is taking towards cryptocurrencies and other digital assets is a sign of approval from China. As such, China may be taking the cryptocurrency investment in Hong Kong as a pilot programme. This is because officials from the mainland have been taking part in some gatherings in recent months.

In light of their friendly and cooperative gestures with crypto investors, analysts have concluded that China has  a change of heart, from its hard stance on cryptocurrency which led it to ban trading of cryptocurrencies in 2021. In fact, its crackdown on cryptocurrencies started way back in 2017.  

Right now, China’s softening stance acts as a cue for Mainland crypto firms and web3 start-ups in Hong Kong to open crypto businesses in the city. Therefore, the city may act as an intermediary for web3 firms that plan to invest in China in the future.

## Conclusion
The HK$50 million set aside by the city will be used to fund the development of Hong Kong’s blockchain ecosystem in its bid to become competitive on the global stage. Furthermore, the city is in the process of crafting the relevant crypto regulation. Both developments should enable the city to attract much crypto investment.



<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

简体中文

English

Tiếng Việt

Español

Русский язык

Français

ภาษาไทย

Türkçe

日本語

Indonesia

Deutsch

عربي

Português (Portugal]

Português (Brasil]

繁體中文

Українська

Hong Kong is set to become a crypto hub following the injection of HK$50 million to develop its blockchain infrastructure and to set the relevant regulation.

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构-借贷服务

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币借贷

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

新手引导(合约)

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

买币-法币交易

买币-银行账号

买币-快捷交易

买币-信用卡

买币-paywith

买币

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

小红花

web3

Hong Kong to accelerate Web3 Innovation with HK$50 million