Gate.io, a cryptocurrency exchange, is preparing to set up a new platform in Hong Kong called Gate HK after the local government’s proposed HKD 50 million ($6.4 million) capital injection into Web3, which is part of the city’s 2023-2024 budget.
According to a report, Gate Group plans to apply for a cryptocurrency license in Hong Kong, allowing it to establish Gate HK in the city. In August 2022, the company’s local subsidiary, Hippo Financial Services, received authorization to offer custodial services for virtual assets.
During a budget speech, Hong Kong’s financial secretary, Paul Chan, announced the proposed financing for Web3 and the formation of a crypto task force. He also stated that the city, which is a Special Administrative Region of China, must keep up with the ongoing development of Web3.
Dr. Lin Han, the founder of Gate Group, recently tweeted that he was “very excited” about the ongoing developments in Hong Kong. He added that Gate Group has secured the TCSP license in Hong Kong and is working on perfecting Gate HK, a new platform designed to service the expanding crypto sector in Hong Kong.
Han believes that Hong Kong is a crucial market for Gate Group on a global scale, not only because it is the center for many financial institutions and investors but also because of its regulatory environment, which is among the best in the world.
The launch of Gate HK is a significant step towards the growth and extension of blockchain and virtual asset usage. These actions boost investor confidence in Gate Group while also strengthening the group’s ties with international cryptocurrency investors.
Despite China’s crypto ban, which seems to oppose Hong Kong’s crypto push, rumours suggest that Beijing officials are quietly supporting the region’s crypto goals.
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