Source: news.google.com
A Hong Kong-based start-up accelerator will assist 1,000 web3 start-ups to bring business to the region. Hong Kong is attempting to regain its status as a crypto hub by achieving the goal in the next three years.
The South China Morning Post reported that G-Rocket is trying to engage companies in the sector to attract more business to the region.
What is more intriguing is the executive body of the startup. While co-founder Johnny Ng Kit is a Hong Kong lawmaker, several other executives are Chinese investors stationed in Singapore and Dubai, two rival crypto hubs.
FTX contagion can’t stop Web3 business
Justin Sun, the founder of TRON, recently stated in an interview that China is actively watching Hong Kong’s legislative actions on cryptocurrencies. He added that he is particularly “optimistic” since Hong Kong serves as China’s “experimental base.”
Notably, the report also comes after the FTX contagion dampened the web3 market. Hong Kong-registered cryptocurrency trading company Auros has revealed that it is entering provisional liquidation due to financial issues. Hong Kong-based Atom Asset Exchange (AAX) was also forced to halt withdrawals due to the implosion. The crisis also sparked strong regulatory action globally. The Hong Kong Securities and Futures Commission (SFC) wasted no time warning users about the dangers of platforms and exchanges.
Despite various warnings on the web3 space, Hong Kong launched two cryptocurrency-based exchange-traded funds (ETFs) for the first time.
Hong Kong Crypto Hub Status
The region is poised to welcome the Anti-Money Laundering and Financing of Terrorism (Amendment) Bill next year. On June 1, 2023, the licensing system for cryptocurrency service providers will enter into force along with other modifications introduced. The industry anticipates that SFC will impose new regulatory criteria on licensed crypto service providers. It will be additional to the existing AML/CFT compliance regime.
However, it is evident that the area still wishes to put on the crown of the crypto center. In an earlier statement, Paul Chan, Hong Kong’s financial secretary, said they “want to make clear the policy stance for global markets, to underscore their determination to explore financial innovation with the global virtual asset community.” The document also noted that despite the continued market downturn, the Hong Kong fintech community is hopeful about the future of the sector in the region.
In the second quarter of 2023, G-Rocket expects to help 100 web3 startups establish business operations in Hong Kong.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on recent developments, but has yet to hear back.
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