Hong Kong’s Cyberport, a government-owned and run business hub, currently hosts over 270 blockchain technology-related enterprises after adding more than 120 firms in 16 months.
On Nov. 19, the Legislative Council (LegCo) of the Hong Kong Special Administrative Region (HKSAR) released a discussion paper highlighting Cyberport’s efforts toward the development of the Web3, crypto and blockchain ecosystems.
The Hong Kong government had allocated $50 million to support Cyberport for the 2023-24 budget. As of June 2023, Cyberport housed more than 150 Web3 firms, according to Financial Secretary Paul Chan Mo-po.
However, the $50 million fund injection and rapid advancements helped Hong Kong increase its network of Web3 firms to more than 270, which includes three unicorns. The report noted:
“The founders of these over 270 enterprises originate from over 20 countries and regions, including Japan, Korea, the United States (“US”), Canada, Germany, the United Kingdom and India, in addition to Hong Kong and the Mainland (China).”
Experimenting with real-world applications of blockchain technology
According to the LegCo report, Cyberport Web3 companies have started implementing blockchain technology into real-world applications, which include smart living, digital entertainment, fintech and cyber and data security.
The broad categorization of Web3 enterprises operating in Cyberport. Source: Hong Kong Legislative Council
Additionally, Cyberport is actively recruiting firms specializing in blockchain security, asset custody and crypto wallets to facilitate cooperation between the various Web3 firms within its network.
Ongoing licensing drive for crypto exchanges
In addition to attracting Web3 talent and companies globally, Hong Kong’s financial regulator, the Securities Futures Commission (SFC), also recently revealed plans to provide operational licenses to cryptocurrency exchanges by the end of 2024.
According to SFC CEO Julia Leung, the Hong Kong government will “make progress” in issuing licenses to 11 Virtual Asset Trading Platforms (VATPs) that have previously applied for an operational license.
A total of 16 companies are awaiting decisions on their VATP applications, and three exchanges have been issued licenses. Hong Kong has provided a license to just one crypto exchange as of Nov. 20, Hong Kong Virtual Asset Exchange.
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