The Hong Kong authorities receive many requests to open headquarters from cryptocurrency companies – officials do not intend to reduce their activities in the crypto industry due to the crisis.
Hong Kong financial secretary Paul Chan said that local regulators intend to cooperate with crypto and fintech startups in 2023 despite the ongoing crisis in the industry. According to Chan, Hong Kong is rapidly approaching the status of a region that will become a hub for large crypto companies and projects.
Over the past two months, the financial secretary says, Hong Kong authorities have received confirmation that many crypto companies want to become public companies on local exchanges.
The Hong Kong authorities are now planning to keep the industry under close scrutiny, Chan says, as it will help unleash the potential of Web3 technologies. The official recalled that in December, the authorities adopted amendments to the laws on combating money laundering and the financing of terrorism, which added requirements for virtual asset service providers.
Chan said that regulators are now overseeing several pilot projects that should expand the understanding of the potential benefits of cryptocurrencies and help to study them. One such initiative is the issuance of green bonds by the government to attract institutional investors.
Previously, the Hong Kong Securities and Futures Commission (SFC) warned investors that digital asset-based products with high interest rates on deposits are not protected by local laws.
Source: Bits
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