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Hong Kong Legislator Aims to Woo Web3 Businesses Through Startup Accelerator

2 mins
Updated by Kyle Baird
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In Brief

  • 1,000 web3 start-ups will receive assistance from a Hong Kong-based accelerator.
  • The accelerator is run by a native Hong Kong legislative councilor.
  • It hopes to foster growth in the sector and make Hong Kong a web3 hub.
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A Hong Kong-based start-up accelerator will offer assistance to 1,000 web3 start-ups to bring business to the region. Hong Kong is attempting to reclaim its crypto hub status by achieving the target in the next three years.

South China Morning Post reported that G-Rocket is trying to rope companies into the sector to bring more business to the region.

What’s more intriguing is the startup’s executive body. While co-founder Johnny Ng Kit is a Hong Kong lawmaker, several other executives are Chinese investors stationed in Singapore and Dubai—two rival crypto hubs.

FTX Contagion Unable to Stop Web3 Businesses

Justin Sun, the founder of TRON, recently asserted in an interview that China actively watches Hong Kong’s legislative actions on cryptocurrencies. He added that he is particularly “bullish” as Hong Kong serves as China’s “experiment base.”

Notably, the report also comes after the FTX contagion dampened the web3 market. The Hong Kong-registered cryptocurrency trading company Auros then revealed that it is entering provisional liquidation due to financial issues. Atom Asset Exchange (AAX), situated in Hong Kong, was likewise compelled to halt withdrawals as a result of the implosion. The crisis also prompted strong worldwide regulatory action. The Securities and Futures Commission (SFC) of Hong Kong didn’t waste any time in warning users about the dangers of staking platforms and exchanges.

Despite several warnings in the web3 space, Hong Kong launched two crypto-based exchange-traded funds (ETFs) for the first time.

Hong Kong’s Crypto Hub Status

The region is set to welcome the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) bill next year. On June 1, 2023, the licensing system for cryptocurrency service providers will go into effect along with other introduced amendments. The industry anticipates SFC will impose new regulatory criteria on licensed crypto service providers. It will be in addition to the existing AML/CFT compliance regime.

However, it is evident that the area still wishes to don the crypto hub crown. In an earlier statement, Paul Chan, the financial secretary for Hong Kong, noted that ‘they want to make policy stance clear to global markets, to highlight their resolve to explore financial innovation with the global, virtual-assets community.’ The paper also noted that despite a continuous market downturn, Hong Kong’s fintech community is hopeful about the future of the sector in the region.

In Q2 2023, G-Rocket hopes to assist 100 web3 start-ups in establishing business operations in Hong Kong.

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Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
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