• Gate Group has applied for a license in Hong Kong to join Huobi Global, OKX, and Bitget.
• Hong Kong has proposed a new licensing regime allowing crypto exchanges to serve retail investors and allocated 50 million Hong Kong dollars ($6.4 million) to expedite the Web3 ecosystem development.
• Hippo Financial Services won a TCSP license in August to provide virtual asset custody services.
Gate Group Joins Crypto Licensing Race
Gate Group, the parent company of the Gate.io crypto exchange, has become the latest firm to apply for a license in Hong Kong. The firm joins Huobi Global, OKX, and Bitget, seeking approval due to crypto-friendly policies established by the government.
Hong Kong Allocates Budget For Web 3 Space
Hong Kong’s financial secretary Paul Chan confirmed the allocation of $6.4 million for Web3 developments in its annual budget speech for 2023-2024. All jurisdictions have been restructuring their crypto regulation following the FTX aftermath, introducing tougher crypto regulations as many companies filed for insolvency causing investors to lose their funds.
Positive Stance On Crypto Draws In Companies
Despite this slew of stricter regulations worldwide, Hong Kong welcomes worldwide crypto firms with open arms making it a potential hub for cryptocurrency businesses. Initially, Hong Kong proposed a new licensing regime allowing crypto exchanges to serve retail investors and allocated 50 million Hong Kong dollars ($6.4 million) to expedite „the Web3 ecosystem development.“
Hippo Financial Services Wins TCSP License
In August 2020 Hippo Financial Services won a Trust or Company Service Provider (TCSP) license which will enable them to provide virtual asset custody services in accordance with local regulations set out by the Securities and Future Commission (SFC).
Conclusion
The positive stance on cryptocurrencies taken by regulators in countries like Hong kong is enticing numerous companies into applying for licenses and creating an even more vibrant industry that is heavily regulated but also increasingly friendly towards cryptocurrencies businesses around the world