Gate.io to enter Hong Kong following city’s $6.4M budget allocation to Web3

Cryptocurrency speech Gate.io is gearing up to motorboat a beingness successful Hong Kong pursuing the section government's planned $6.4 cardinal (50 cardinal Hong Kong dollar) currency injection into Web3 arsenic per the city’s 2023-24 budget.

Gate Group said connected Feb. 22 that it volition use for a crypto licence successful Hong Kong allowing it to motorboat “Gate HK.” The firm's section company, Hippo Financial Services, gained a licence successful August 2022 to supply virtual plus custodial services.

It comes arsenic Hong Kong fiscal secretary, Paul Chan, announced the Web3-related backing and the instauration of a crypto task unit successful a Feb. 22 fund speech.

He added Web3 has “huge potential” and the Special Administrative Region of China indispensable support gait with its “continuous development.”

“We indispensable support up with the times and prehend this aureate accidental to spearhead innovation development.”

Chan outlined the funds would spell toward expediting “the Web3 ecosystem development” by organizing planetary seminars, promoting concern practice and arranging “workshops for young people.”

He noted a “large number” of companies are considering mounting up shop successful the metropolis owed to the government’s cryptocurrency laws. Gate Group’s founder, Dr. Han Lin, called Hong Kong “a planetary strategical market” and a “hub” owed to its “industry-leading regulatory regime.”

Very excited astir Hong Kong. Having obtained the TCSP License successful HK, Gate Group is besides preparing for a crypto licence and good tuning Gate HK, a caller entity tailored to service HK’s increasing crypto market, enactment tuned.

— Lin Han (@han_gate) February 21, 2023

Hong Kong shared its plans connected Feb. 20 with a new licensing regime and a connection to let retail traders entree to licensed crypto platforms.

Due to the influx of concern interest, Chan said helium “will found and pb a task force” connected virtual plus improvement made up of members from fiscal regulators, marketplace participants and “relevant argumentation bureaux.”

Related: Hong Kong securities regulator adds crypto unit for manufacture supervision

The task unit would “provide recommendations connected the sustainable and liable improvement of the sector” according to Chan.

Hong Kong started its propulsion to summation presumption arsenic a planetary crypto hub successful October 2022 by launching crypto-friendly argumentation frameworks to modulate the manufacture wrong the city.

Despite being a portion of China, the city’s peculiar presumption allows for its ain laws and governance. Hong Kong’s crypto propulsion would look to beryllium successful opposition to China’s crypto ban, but it's reported that officials successful Beijing are softly backing the region's crypto ambitions.