Yet another crypto exchange is revealing plans to start operating in Hong Kong.
Gate Group, the firm behind the Gate.io cryptocurrency exchange, has revealed plans to enter Hong Kong.
Its founder, Dr. Han Lin, revealed Gate Group’s plans to enter Hong Kong on Twitter.
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Shortly after that, Gate Group confirmed the news by issuing a dedicated press release. In the statement, Gate Group noted that it plans to launch its services in Hong Kong via Gate HK, a new platform tailored for the city.
Gate Group is not new to Hong Kong. Hippo Financial Services Limited, its subsidiary, already holds a Trust or Company Services Provider (TCSP) license, which permits it to offer crypto custodial services.
The decision to enter Hong Kong via Gate HK came shortly after the local government announced plans to invest $6.4 million in Web3 between 2023 and 2024. The city’s financial secretary, Paul Chan, also announced the creation of a crypto task force during his budget speech on February 22nd.
In his speech, Paul Chan said there was a massive potential in Web3, and the city must keep up with the sector.
We must keep up with the times and seize this golden opportunity to spearhead innovation development.
Paul Chan revealed that the funds would be used to expedite the development of a Web3 ecosystem. It would entail hosting international seminars, promoting business cooperation, and holding workshops. Chan noted that many companies were mulling plans to set up operations in Hong Kong due to its crypto-friendly laws.
It is worth noting that Hong Kong’s Securities and Futures Commission (SFC) has begun collecting public feedback for its proposed crypto licensing laws. A key point of discussion is whether licensed crypto platforms should be allowed in the country and what measures will ensure proper investor protection. If everything goes according to plan, the laws will take effect in June 2023.
Gate.io is not the only crypto exchange looking to start operating in Hong Kong. On February 20th, Huobi Global revealed that it is working on becoming “one of the first fully compliant” crypto exchanges in Hong Kong.
