Hong Kong Treasury Bureau Xu Zhengyu: The Hong Kong Monetary Authority is studying the regulatory system for stable currencies

On March 20, the Secretary for Financial Affairs and the Treasury of the Hong Kong Special Administrative Region Government, Xu Zhengyu, stated at the Aspen Digital Web3 Investment Summit that by the end of February 2023, the Investment Promotion Department had received over 80 mainland and foreign companies related to virtual assets expressing their intention to establish businesses in Hong Kong.

Interpretation of this information:

The latest announcement by the Secretary for Financial Affairs and the Treasury of the Hong Kong Special Administrative Region Government, Xu Zhengyu, regarding the influx of companies related to virtual assets wanting to establish businesses in Hong Kong is a positive indication of the growing interest in this sector. The Investment Promotion Department has reportedly received over 80 mainland and foreign companies expressing their interests in establishing businesses before the end of February 2023.

This news comes at a time when Hong Kong is striving to revive its economy after a decline in recent years. The initiative to attract more investments related to virtual assets is timely and holds great potential as it could provide a boost to the economy. The companies that have expressed interest in developing virtual assets businesses in Hong Kong could provide job opportunities, boost the economy, and increase the tax revenue for the government.

Hong Kong has traditionally been an attractive location for businesses due to its strategic location, proximity to China, robust legal system, and relatively low taxes. These qualities of Hong Kong provide it with a competitive advantage in attracting virtual asset businesses, as other regions such as mainland China have very strict restrictions concerning virtual currencies. This restriction has been a positive driving force behind attracting overseas investments in the crypto sector with Hong Kong becoming a preferred destination for new companies looking to establish their virtual asset business.

The influx of companies related to virtual assets sets a good stage for more players interested in venturing into the sector, making Hong Kong a hub for virtual assets. The interest in virtual assets has been growing in recent years, and it is expected that it will continue to grow in response to the global digital transformation.

In conclusion, the announcement by the Secretary for Financial Affairs and the Treasury of the Hong Kong Special Administrative Region Government regarding the influx of virtual asset businesses expresses the growing interest in this sector worldwide. Hong Kong has always been a hub for businesses, and with the coming of virtual assets, it offers an opportunity to revive the economy, provide job opportunities and increase tax revenue.