May 25, 2023
By Anjali Kochhar
Hong Kong has positioned itself as the leading hub for Web3, the blockchain-based evolution of the internet, attracting cryptocurrency businesses and digital asset companies.
According to the South China Morning Post, Hong Kong’s favourable business environment, strict regulations, and initiatives to support the digital asset economy have captured the attention of industry players.
Cryptocurrency trading platforms OKX and Bitget have recently applied for operation licenses in Hong Kong, indicating their interest in establishing a presence in the city. Additionally, cryptocurrency data provider Kaiko and cryptocurrency exchange Huobi have announced plans to relocate their Asia headquarters from Singapore to Hong Kong.
Hong Kong’s business-friendly environment, which ranks third globally for ease of doing business among 190 economies, has been instrumental in attracting companies involved in non-fungible tokens (NFTs), trading platforms, and metaverse builders. The city’s strategic approach, coupled with regulatory measures to prevent massive cryptocurrency project collapses like the Terra-Luna and FTX incidents of the previous year, has further bolstered its appeal.
Meanwhile, other Asian cities are also vying for a share of the emerging digital asset economy. Singapore, Japan, South Korea, and Dubai are actively positioning themselves to become significant players in the Web3 space, recognising the potential economic benefits associated with this technology.
Overall, Hong Kong’s proactive measures, robust business environment, and stringent regulations have positioned the city as a frontrunner in the race to become the Web3 hub of Asia. As digital asset companies flock to Hong Kong, the region is poised to play a significant role in the future of blockchain-based technologies.
Tuesday’s announcement by the Securities and Futures Commission that Hong Kong will allow retail investors to trade in cryptocurrencies beginning June will further establish the former British Colony’s role as a leading Web3 hub.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.