Despite the ongoing crisis in the cryptocurrency sector that was created by the collapse of the FTXThe Hong Kong government has not wavered in its commitment to the development of cryptocurrency infrastructure.

Paul Chan, Hong Kong’s finance secretary, has said that the government and local authorities are open to the possibility of working together with cryptocurrency and fintech companies in 2023.

Public broadcasting station Radio Television Hong Kong (RTHK) reported on January 9 that Chan made his remarks while speaking at an event organized by the state-run incubator Cyberport. Chan said Hong Kong has become a base linking high-quality virtual asset companies.

Over the past two months, according to Hong Kong’s Financial Secretary, the Hong Kong government has been inundated with proposals from cryptocurrency-associated companies to establish their global headquarters in Hong Kong.

Chan also said that a large number of industrial companies have indicated their intentions to go public in local markets or grow their operations in Hong Kong. Hong Kong is doing everything it can to ensure that the cryptocurrency market is subject to the kind of oversight necessary to unlock the potential offered by technologies like Web3.

He added that in December last year, Hong Kong lawmakers passed legislation that would establish a licensing framework for virtual asset service providers. The new regulatory framework is being developed with the intention of providing cryptocurrency exchanges with the same level of market recognition that is now given to mainstream financial institutions using the existing framework.

Over the past year, Hong Kong has progressively reiterated its pro-crypto stance and is on track to become the most crypto-ready nation by 2022.

In mid-December, Hong Kong introduced its first two exchange-traded funds (ETFs) for bitcoin futures. Prior to its debut, the funds raised more than $70 million.

The event came shortly after the chairman of the Hong Kong Securities and Futures Commission indicated in October that Hong Kong is prepared to differentiate its approach to cryptocurrency regulation from China’s cryptocurrency ban, which is scheduled to be implemented in 2021.