Following the announcement that the Hong Kong government intends to infuse 50 million Hong Kong dollars ($6.4 million) into Web3 as part of the city’s budget for the 2023-24 fiscal year, cryptocurrency exchange Gate.io is getting ready to build a presence in Hong Kong.

On February 22nd, Gate Group announced that it would be applying for a cryptocurrency license in Hong Kong, which will enable it to establish “Gate HK.” Hippo Financial Services, the local subsidiary of the corporation, was awarded a license in August 2022 to allow it to offer custody services for virtual assets.

In a budget address on February 22, the Hong Kong finance secretary, Paul Chan, pledged financing relating to Web3 as well as the formation of a crypto task force. This news comes at the same time.

He went on to say that Web3 had “great potential,” and that the Special Administrative Region of China is obligated to keep up with its “constant growth.”

“It is imperative that we stay current with the times and make the most of this priceless chance to drive innovation forward.”

Chan said that the monies will be used to expedite “the growth of the Web3 ecosystem” by organising “workshops for young people,” holding international seminars, and boosting commercial collaboration.

Because of the legislation that the government has enacted around cryptocurrencies, he said that a “big number” of businesses are contemplating opening up shop in the city. Dr. Han Lin, the founder of Gate Group, referred to Hong Kong as both “a worldwide strategic market” and a “hub” because of its “industry-leading regulatory system.”

On February 20th, Hong Kong announced its intentions, which included a new licensing framework as well as a proposal to provide retail traders access to approved cryptocurrency platforms.

Chan has said that he “will organize and head a task force” on the creation of virtual assets in response to the surge in commercial interest. This task force will be comprised of individuals from financial regulators, market actors, and “relevant policy bureaux.”

According to Chan, the purpose of the task group is to “offer suggestions on the sustainable and responsible growth of the industry.”

In October, Hong Kong launched crypto-friendly policy frameworks in an effort to govern the business inside the city. This was the first step in the city’s quest to achieve status as a worldwide centre for the cryptocurrency industry.

The city’s unique status enables it to have its own laws and government, despite the fact that it is located inside a territory that is part of China. However, there are reports that authorities in Beijing are covertly supporting the region’s crypto aspirations. This would appear to be in contradiction to China’s prohibition on cryptocurrencies, but the push that Hong Kong is making in the cryptocurrency space.