The government’s dedication to fostering innovation was emphasized by Hong Kong’s Financial Secretary. He highlighted the presence of over 1,900 community enterprises in Cyberport. Chan Mo-po, in a translated statement, acknowledged that a company within the Cyberport community had obtained a license from the Securities and Futures Commission, making it the second virtual asset trading platform in Hong Kong to do so in the previous year.
As per the official, Cyberport’s “Financial Budget” allocated approximately $6.3 million (HK$50 million) towards the development of third-generation web3 companies on the Internet. The financial secretary stated that over the past year, Cyberport has provided support to more than 150 companies in this domain.
The official recognized the government’s substantial investments in the sector, with the Financial Secretary emphasizing that the Technology and Industry Bureau has received $200 billion in investments since 2015. Furthermore, it was revealed that Cyberport would receive approximately $64 million (HK$500 million) in funding for the “Digital Transformation Support Pilot Programme,” aimed at assisting small and medium-sized businesses in adopting digital solutions.
Following China’s decision to ban cryptocurrencies entirely, Hong Kong has emerged as a dominant force for digital assets in Asia. Starting from June 1, the city’s Securities and Futures Commission has approved stringent regulations for retail trading of certain crypto assets.
This move signifies Hong Kong’s progress in establishing its Virtual Asset Service Provider (VASP) licensing system, with plans underway to develop a legislative framework specifically for stablecoins. Hong Kong aims to position itself as a prominent global cryptocurrency hub.
On the contrary, there are murmurs suggesting that mainland China might reassess its ban on cryptocurrencies, potentially influenced by regulatory shifts and technological advancements in Hong Kong. Furthermore, Hong Kong is also poised to join other jurisdictions in exploring the adoption of a central bank digital currency (CBDC).
