Gate.io to Officially Enter Hong Kong: Details

After the Hong Kong government announced plans to invest 50 million Hong Kong dollars ($6.4 million) in Web3 as part of the city’s 2023–24 budget, cryptocurrency exchange Gate.io is preparing to get established in the city.

On February 22, Gate Group announced that it would file for a crypto license in Hong Kong so that it could introduce “Gate HK.” In August 2022, the company’s local subsidiary, Hippo Financial Services, received authorization to offer custodial services for virtual assets.

In a budget speech on February 22, Hong Kong’s financial secretary, Paul Chan, revealed funding for Web3 and the formation of a crypto task force.

He said that Web3 has “huge potential” and that the Special Administrative Region of China must keep up with its “continuous development.” He added: 

“We must keep up with the times and seize this golden opportunity to spearhead innovation development.”

Hong Kong Bullish on Web3 and Crypto

Chan explained how the money would be used to promote business collaboration, host foreign conferences, and set up “workshops for young people” to hasten the development of “the Web3 ecosystem.” He said that because of the city’s cryptocurrency laws, a “large number” of businesses are contemplating opening there.

On February 20, Hong Kong revealed its intentions for a new licensing system and a suggestion to give retail traders access to authorized cryptocurrency platforms.

Chan announced that he “will establish and lead a task force” composed of representatives from financial regulators, market players, and “relevant policy bureaux” on virtual asset development in response to the surge in business interest.

According to Chan, the task force would “provide recommendations on the sustainable and responsible development of the sector.”

Dr. Han Lin, the founder of Gate Group, referred to Hong Kong as a “hub” and a “global strategic market” because of its “industry-leading regulatory system.”

Meanwhile, the Securities and Futures Commission (SFC) of Hong Kong most recently put forth a proposal that is anticipated to regulate the dealing of digital assets in the area.