Hong Kong wants to be a center for cryptocurrencies, and companies that deal with digital assets are looking at the possibilities.

The region’s Secretary for Financial Services and the Treasury says that Hong Kong is moving faster toward its goal of becoming a global hub for crypto.

Christopher Hui said in a speech on Monday at the Aspen Digital Web3 Investment Summit in Hong Kong, the business hub of East Asia, that more than 80 companies had shown interest in setting up shop there.

These include crypto exchanges, blockchain infrastructure firms, blockchain network security firms, virtual currency wallet providers, and payment companies.

“Hong Kong is well-positioned to be a leading hub for Web3 in Asia and beyond, and we attach great importance to virtual assets and Web3,” Hui said.

Hong Kong has been discussing for some time its desire to be a hub for the creation of innovative digital asset concepts. Its economy and reputation as a fintech hub were shaken by the Covid-19 lockdowns and previous regulatory crackdowns, which frightened away many crypto startup companies.

One of the most notable instances was the defunct cryptocurrency exchange FTX, which moved to the Bahamas while blaming Hong Kong’s complex regulatory framework. The exchange was once one of the most recognizable names in cryptocurrency, but it failed last year due to alleged mismanagement.

Hong Kong has since opened consultations and rescinded new regulations restricting access to digital assets for retail investors.

Today, Nikkei Asia reported that a number of Chinese cryptocurrency firms are considering Hong Kong. Chinese securities firms and banks are reportedly interested in allowing customers to trade Bitcoin and Ethereum on licensed exchanges.

The Securities and Futures Commission of Hong Kong (SFC) proposed just last month that the city “allow all investors, including retail investors, access to trading services provided by licensed VA [virtual asset] trading platform operators.”

Mainland China’s government cracked down on cryptocurrencies in 2021 by making it illegal to mine Bitcoin.

In his speech, Hui stated that Web3, the next evolution of the Internet based on blockchains, has the “potential to enable more decentralized, efficient, and inclusive platforms” for the benefit of users and content creators.

“It will also create new opportunities for innovation, entrepreneurship and social impact,” he added.

Content Source: decrypt.com

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