Hong Kong Supports Web3 Startups with $100 Million
Investors in Hong Kong are creating a fund to finance early-stage Web3 companies called ProDigital Future. It aims to raise $100 million in backing. It has managed to raise $30 million at the moment and plans to reach the $100 million mark by the end of the year.
Investors backing the project include Sunwah Kingsway Capital Holdings and Golin International Group. Support will be extended to companies in China, Singapore, and Australia, as well as in Europe and the United States, and money from the fund has already been used for six projects across digital assets.
The whole initiative is in response to the Hong Kong government's efforts to create its own law to regulate cryptocurrencies. At the same time, the Securities and Futures Commission has published a proposal for a licensing regime for cryptocurrency exchanges, which is due to come into force in June this year. It will provide greater security in the cryptocurrency market by requiring market participants to safekeep assets, comply with Know Your Customer (KYC) standards and follow anti-money laundering and anti-terrorist financing rules.
This fund with the government should create a more stable place for Hong Kong investors and encourage compliance towards the legalization of the cryptocurrency industry and push it to grow. Such licensing regime could mean attracting more investors into the cryptocurrency field, making Hong Kong a more reliable hub for digital assets.
However, there are concerns about the potential impact of the licensing regime on small crypto businesses and the high costs potentially incurred may make it difficult for newcomers to enter the market. Hong Kong is ready for growth in that area, as evident with the creation of the fund. It remains to be seen how the whole situation will develop; the coming months will be crucial in the issue of cryptocurrencies in Hong Kong.
Sources:
https://beincrypto.com/pro-digital-futures-invests-100m-in-crypto/
https://cointelegraph.com/news/hong-kong-fund-plans-to-raise-100-million-for-crypto-investment