Hong Kong will release 8 new crypto licenses by the end of the year; City fund raises $100 million for startups
- Hong Kong has made major positive steps in the cryptocurrency industry
- The country said it could face a backlog in virtual asset license applications as demand for licenses increases
- There are over 80 crypto-related companies planning to diversify into Hong Kong
Hong Kong is stepping up its renewed cryptocurrency efforts and intends to release eight licenses by the end of the year while currently raising a $100 million fund for cryptocurrency startups.
Hong Kong, a special administrative region of China, unlike other countries, has taken major positive steps in the cryptocurrency industry, with its regulators easing strict regulations and softening their stance while maintaining the country’s mission. to protect its consumers.
Last week, the country said it could face a backlog of virtual asset license applications as demand for licenses increases.
Angelina Kwan, CEO of Stratford Finance and former director of the Hong Kong Securities and Futures Commission (SFC) said in an interview that at least eight cryptocurrency-related companies could obtain virtual asset trading licenses by the end of the year as part of the ongoing effort of the new crypto licensing campaign from the city.
“Internal controls are very important and by putting them in policies and procedures they actually follow. Security is key and so is the wallet system. They require digital asset companies to have their own wallet system in place. It has to be like a part of the whole process now instead of separating it unless you have a really good system in place,” Kwan added.
Kwan’s previous statement earlier this month revealed that more than 80 crypto-related firms plan to diversify into Hong Kong with state-owned banks in the region motivated to work with these firms.
A new fund aiming to raise $100 million has been launched in Hong Kong, intended to support investment in digital assets as the city moves towards its plan to become a regional fintech hub. Led by Ben Ng, a venture partner at Asian private equity firm SAIF Partners, and longtime tech investor Curt Shi, the fund has already raised $30 million in funding commitments.
The companies that committed at the first closing of the fund are Sunwah Kingsway Capital Holdings Ltd. and Golin International Group Ltd.
“I understand the concerns, but nothing is perfect given the complexity of the crypto economy and the current geopolitical situation,” Shi said in a statement. interviewadding that “our strategy is to continue to see how things are going”.
The tech investor also mentioned that he believes “Hong Kong will continue to have a certain degree of openness and flexibility”, noting that “although our portfolio and fund will embrace Hong Kong and its policies, we will continue to to be present in Australia, Singapore, as well as in Europe and the United States.”
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