• Gate.io is preparing to launch a presence in Hong Kong following the city’s $6.4 million cash injection into Web3 under its 2023-24 budget.
• The firm has obtained a virtual asset custodial services license and will apply for a crypto license in Hong Kong.
• Paul Chan, financial secretary of Hong Kong, announced the funding and creation of a crypto task force in his Feb 22 budget speech.

Gate.io Enters Hong Kong Following City’s Investment

Gate.io is gearing up to launch a presence in Hong Kong following the local government’s planned 50 million Hong Kong dollar ($6.4 million) cash injection into Web3 under the city’s 2023-24 budget. Gate Group said on Feb. 22 that it will apply for a crypto license in Hong Kong allowing it to launch “Gate HK.” The firm’s local company, Hippo Financial Services, gained a license in August 2022 to provide virtual asset custodial services.

Hong Kong Government Plans For Web3 Ecosystem Development

Paul Chan, financial secretary of Hong Kong, announced the Web3-related funding and the creation of a crypto task force in his Feb 22 budget speech. He added Web3 has “huge potential” and the Special Administrative Region of China must keep pace with its “continuous development.”The funds will be used to expedite “the Web3 ecosystem development” by organizing international seminars, promoting business cooperation and arranging “workshops for young people.”

Benefits To Establishing In Hong Kong

A large number of companies are considering setting up shop in the city due to the government’s cryptocurrency laws according to Chan’s speech. Gate Group founder Dr Han Lin called Hong Kong “a global strategic market” and “a hub” due to its “industry-leading regulatory regime”.

Purpose Of Funds Allocation

The funds allocated by the government would go toward expediting “the Web3 ecosystem development” by organizing international seminars, promoting business cooperation and arranging “workshops for young people.” This would help promote innovation within this sector while keeping up with current trends as well as spearhead further growth within this space .

Conclusion

Due to increased investment from local governments such as those from HonegKong into web 3 technology , firms such as Gate are looking to expand their reach globally through them leveraging these opportunities which come with unique benefits such as having access an industry leading regulatory regime .