The country’s financial secretary says state funding and support have helped draw Web3 innovators to the digital hub.
In the past year, more than 150 Web3 firms have set up operations in Hong Kong’s Cyberport — a digital hub set up by the country’s government to promote innovation — Financial Secretary Paul Chan Mo-po said in a statement.
The influx came after the Hong Kong government invested 50 million yuan ($7 million) to help Cyberport speed up the development of Web3 with blockchain as the supporting technology, Chan Mo-po said.
Chan Mo-po detailed the Hong Kong government’s investments in the sector and said that Cyberport had been allocated around 500 million Hong Kong dollars ($64 million) in funding for the “Digital Transformation Support Pilot Programme,” an initiative aimed at helping small and medium-sized businesses to implement digital solutions.
Cyberport, which is managed by a wholly-owned subsidiary of the government of Hong Kong Special Administrative Region, hosts a total of 1,900 enterprises, the statement said.
Related: Hong Kong’s regulatory lead sets it up to be major crypto hub
Hong Kong recently introduced its own crypto legislation allowing retail investors to invest directly in crypto assets and presenting itself as keenly pro-crypto.
Since then, the country has continued to support the industry. In January, as the crypto industry was reeling from the FTX crisis, the financial secretary said that local government and regulators are looking forward to building a crypto and fintech ecosystem in 2023.
On Jan. 13, Korean tech giant Samsung announced the launch of a Bitcoin Futures Active exchange-traded fund on the Stock Exchange of Hong Kong.
In mid-February, sources claimed that some Chinese officials were reportedly giving tacit approval to Hong Kong’s pro-crypto efforts. Local business operators stated that the Chinese government might even be open to using Hong Kong as a test bed for crypto as long as it doesn’t threaten the country’s financial stability.
By March, more than 80 crypto firms had expressed interest in opening an office in Hong Kong.
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