Hong Kong speeds up Web3 push to attract startups



The Hong Kong-based start-up accelerator will support 1,000 Web3 start-ups to bring business to the region. Hong Kong is attempting to reclaim its crypto hub status by achieving the target over the next three years.

The South China Morning Post reported that G-Rocket is trying to attract companies to the area to bring more business to the area.

What’s more complicated is the startup’s executive body. While co-founder Johnny Ng Kitt is a Hong Kong lawmaker, several other executives are Chinese investors stationed in Singapore and Dubai – two rival crypto hubs.

Unable to stop FTX infection Web3 businesses

Justin Sun, the founder of TRON, said in a recent interview that China is actively watching Hong Kong’s legislative actions on cryptocurrencies. He said he is particularly “bullish” because Hong Kong serves as China’s “experiment base”.

Notably, the report comes after the FTX transition even as the Web3 market declined. Hong Kong-registered cryptocurrency trading firm Auros then revealed that it is entering temporary liquidation due to financial issues. The Atomic Asset Exchange (AAX) based in Hong Kong was also forced to halt withdrawals due to the explosion. The crisis also prompted strong regulatory action around the world. Hong Kong’s Securities and Futures Commission (SFC) wasted no time in warning users about the dangers of staking platforms and exchanges.

Despite several warnings in the Web3 sector, Hong Kong launched two crypto-based exchange-traded funds (ETFs) for the first time.

Hong Kong’s crypto hub status

The sector is set to welcome the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill next year. The licensing regime for cryptocurrency service providers will come into effect on June 1, 2023, along with other introduced amendments. The industry expects the SFC to impose new regulatory norms on licensed crypto service providers. This will be in addition to the existing AML/CFT compliance regime.

However, it is clear that the region is still vying for the crown of crypto hub. In an earlier statement, Paul Chan, Hong Kong’s financial secretary, said he ‘wants to clarify the policy stance for global markets, highlighting his resolve to explore financial innovation with the global, virtual-asset community’ ‘ The paper also states that despite the continuing market downturn, Hong Kong’s fintech community is optimistic about the future of the sector in the region.

In Q2 2023, G-Rocket expects to assist 100 Web3 start-ups to set up business operations in Hong Kong.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.



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