Gate.io to launch in Hong Kong as government invests $6.4m in web3

Crypto exchange Gate.io has announced its plans to launch in Hong Kong following the government’s cash injection of HKD 50 million ($6.4 million) into web3 under the city’s 2023-24 budget.

On Feb. 22, Gate Group announced it would apply for a cryptocurrency license in Hong Kong. Hippo Financial Services, the firm’s local subsidiary, was granted permission to provide virtual asset custodial services in August 2022.

Hong Kong pushes to be a crypto hub

Hong Kong’s Financial Secretary, Paul Chan, recently announced the creation of a crypto task force and allocating funds toward developing the web3 ecosystem.

According to Chan, Web3 has vast potential. The region must keep up with its continuous development to spearhead innovation. The government intends to expedite the development of the Web3 ecosystem by organizing international seminars, promoting business cooperation, and providing workshops for young people.

With the influx of companies considering setting up shops in Hong Kong due to the government’s crypto laws, Chan stated that he would establish and lead a task force on the development of virtual assets composed of financial regulators, market participants, and relevant policy offices.

The task force’s goal is to make recommendations on how to develop the sector sustainably and responsibly.

Hong Kong has been pushing to gain global status as a crypto hub since October by introducing crypto-friendly policy frameworks to regulate the industry within the city.

Despite being a region of China, Hong Kong has its laws and governance. While this may seem to be in contrast to China’s crypto ban, officials in Beijing are reportedly quietly supporting the region’s crypto ambitions.

Gate Group’s founder, Dr. Han Lin, referred to Hong Kong as a global strategic market and a hub due to its industry-leading regulatory regime.