Hong Kong To Release 8 New Crypto Licenses By Year-End; City-Based Fund Raising $100M For Startups

Hong Kong is ramping up its renewed cryptocurrency efforts and intends to release eight licenses by the end of the year while currently raising $100 million fund for cryptocurrency startups.

Hong Kong, a special administrative region of China, unlike other countries, has been taking major positive steps in the cryptocurrency industry, with its regulators easing up strict regulations and softening their stance but maintaining the country's mission of protecting its consumers.

Last week, the country said it might face a backlog in virtual asset license applications as demand for licensing increases.

Now, Stratford Finance CEO and former head of Hong Kong's Securities and Futures Commission (SFC) Angelina Kwan said in an interview that at least eight cryptocurrency-related firms might get virtual asset trade licenses by the end of the year as part of the ongoing effort of the city's new crypto licensing campaign.

"Internal controls are very important and by putting it in policies and procedures that they actually follow. Security is key, and so is the walleting system. They're requiring digital asset firms to have their own walleting system in place. That has to be as a part of the whole process now instead of separating it unless you have a really good system in place," Kwan added.

Kwan's previous statement earlier this month revealed that more than 80 crypto-related businesses are planning to branch out in Hong Kong with state-owned banks in the region motivated to work with these businesses.

A new fund to raise $100 million has been started in Hong Kong, which is meant to support digital asset investment as the city moves toward its plan of becoming a regional financial technology hub. Led by Ben Ng, a venture partner at the Asian private equity firm SAIF Partners, and longtime tech investor Curt Shi, the fund has already raised $30 million in funding commitments.

Businesses that committed to the fund's first close are Sunwah Kingsway Capital Holdings Ltd. and Golin International Group Ltd.

"I understand the concerns, but nothing is perfect given the complexity of the crypto economy and current geopolitical situation," Shi said in an interview, adding that "our strategy is to continue to see how things go."

The tech investor also mentioned that he believes "Hong Kong will continue to have a certain degree of openness and flexibility," noting that "while our portfolio and fund will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as in Europe and the US."