![](\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvNGVjYjAxN2QtYzU3ZC00MWVhLTlmNzItNDg0NDUxMmVkN2EzLmpwZw==.jpg\")
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Cryptocurrency exchange Gate.io is gearing up to launch a presence in Hong Kong following the local government’s planned $6.4 million (50 million Hong Kong dollar) cash injection into Web3 as per the city\u2019s 2023-24 budget.<\/p>\n
Gate Group said<\/a> on Feb. 22 that it will apply for a crypto license in Hong Kong allowing it to launch \u201cGate HK.\u201d The firm’s local company, Hippo Financial Services, gained a license in August 2022 to provide virtual asset custodial services.<\/p>\n It comes as Hong Kong financial secretary, Paul Chan, announced the Web3-related funding and the creation of a crypto task force in a Feb. 22 budget speech<\/a>.<\/p>\n He added Web3 has \u201chuge potential\u201d and the Special Administrative Region of China must keep pace with its \u201ccontinuous development.\u201d<\/p>\n \u201cWe must keep up with the times and seize this golden opportunity to spearhead innovation development.\u201d<\/p><\/blockquote>\n Chan outlined the funds would go toward expediting \u201cthe Web3 ecosystem development\u201d by organizing international seminars, promoting business cooperation and arranging \u201cworkshops for young people.\u201d<\/p>\n He noted a \u201clarge number\u201d of companies are considering setting up shop<\/a> in the city due to the government\u2019s cryptocurrency laws. Gate Group\u2019s founder, Dr. Han Lin, called Hong Kong \u201ca global strategic market\u201d and a \u201chub\u201d due to its \u201cindustry-leading regulatory regime.\u201d<\/p>\n Very excited about Hong Kong. Having obtained the TCSP License in HK, Gate Group is also preparing for a crypto license and fine tuning Gate HK, a new entity tailored to serve HK\u2019s growing crypto market, stay tuned.<\/p>\n \u2014 Lin Han (@han_gate) February 21, 2023<\/a><\/p><\/blockquote>\n Hong Kong shared its plans on Feb. 20 with a new licensing regime<\/a> and a proposal to allow retail traders access to licensed crypto platforms.<\/p>\n Due to the influx of business interest, Chan said he \u201cwill establish and lead a task force\u201d on virtual asset development made up of members from financial regulators, market participants and \u201crelevant policy bureaux.\u201d<\/p>\n Related: <\/em><\/strong>Hong Kong securities regulator adds crypto personnel for industry supervision<\/em><\/strong><\/a><\/p>\n The task force would \u201cprovide recommendations on the sustainable and responsible development of the sector\u201d according to Chan.<\/p>\n Hong Kong started its push to gain status as a global crypto hub in October 2022 by launching crypto-friendly policy frameworks<\/a> to regulate the industry within the city.<\/p>\n Despite being a region of China, the city\u2019s special status allows for its own laws and governance. Hong Kong\u2019s crypto push would seem to be in contrast to China\u2019s crypto ban<\/a>, but it’s reported that officials in Beijing are quietly backing<\/a> the region’s crypto ambitions.<\/p>\n \n<\/div>\n\n