Crypto Giants Apply for License in Hong Kong, Gov’t Allocates $6.4M for Web3
• Gate Group, parent company of the Gate.io crypto exchange, has applied for a license in Hong Kong alongside other leading crypto firms.
• The Hong Kong government has allocated $6.4 million to promote Web3 developments and make the city a crypto hub.
• Gate Group is seeking approval from the country’s Securities and Future Commission (SFC) to establish its own crypto exchange called Gate HK.
Crypto Exchanges Applying For Licenses In Hong Kong
The parent company of the Gate.io crypto exchange, Gate Group, is the latest firm to apply for a license in Hong Kong. This follows other leading exchanges such as Huobi Global, OKX, and Bitget that are also seeking approval due to the region’s increasingly positive stance towards cryptocurrencies.
Hong Kong Government Encourages Cryptocurrency Development
In his annual budget speech for 2023-2024, Paul Chan, financial secretary of Hong Kong confirmed the allocation of $6.4 million for Web3 developments in order to promote cryptocurrency development in the region and make it more attractive for firms looking to settle in and operate there. As regulations become stricter worldwide due to mismanagement of funds by some crypto companies that have gone bankrupt and caused investors losses, many jurisdictions have been restructuring their regulations in an effort to protect users from potential risks associated with cryptocurrency trading and investments .
Gate Group Applies To Establish Crypto Exchange In Hong Kong
Gate Group is now looking to capitalize on this positive sentiment by applying for a license from the Securities and Future Commission (SFC) which would allow it to establish its own cryptocurrency exchange named Gate HK. The firm joins other local companies such as Hippo Financial Services who won a TCSP license in August allowing them provide virtual asset custody services within the city limits .
Hong Kong Allocating Funds To Develop Cryptocurrency Space
During his budget speech Paul Chan also stated that he will be allocating 50 million Hong Kong dollars ($6.4 million) towards expanding “the Web3 ecosystem development” through organising international seminars where industry experts can discuss frontier development while also providing workshops aimed at educating young people about cryptocurrencies .
Bitcoin Price Stands Below $24K
Currently Bitcoin’s price stands below $24,000 on daily charts as regulatory clarity around cryptocurrencies continues to improve worldwide with more governments considering relaxing laws related cryptocurrency trading and investments .