While nearly every major city in the world has at one point expressed it would like to become the crypto capital of the world, Hong Kong is making particularly substantial strides in doing so — with over 80 crypto businesses showing interest in establishing their companies in the region and 23 have already committed to doing so, according to the Financial Services Secretary Christian Hui.

The majority of the interested digital asset companies are said to be those currently situated in mainland China, with additional interested parties from around the world, as announced by Hui, during a speech in Hong Kong on March 20.

Hui noted that since the government released its policy statement on Virtual Asset Development in October 2022, the city has been attracting interest from various crypto firms worldwide. These firms are interested in learning more about the implementation details of the policy statement, regulatory requirements, visa requirements for talent admission, and targeted support measures for the virtual assets and the broader Web3 sector.

The Treasury Secretary also emphasized that Hong Kong is well-positioned to be a leading Web3 hub, with over 800 fintech companies already operating in the city, adding that the 2023 budget allocation of “$50 million” should “expedite the Web3 ecosystem.”

In June 2023, Hong Kong plans to establish a licensing regime for virtual asset service providers, which Hui believes will attract more quality virtual asset enterprises to the city.

It would seem that companies are attracted by the contrast of regulatory policies, particularly those in mainland China versus Hong Kong. In recent years, the Chinese government has implemented stricter regulations on the crypto industry, including a ban on initial coin offerings (ICOs) and increasing restrictions on exchanges.

Hong Kong, on the other hand, has a more liberal approach to the industry and offers a more favorable business environment for crypto companies at the time of writing. The territory has a well-established financial system, a highly skilled workforce, and a favorable tax regime, making it an attractive destination for crypto companies looking to expand their operations.

Additionally, Hong Kong is a global financial hub with a strong reputation for financial stability and innovation. This, combined with its proximity to mainland China, has made it an attractive destination for crypto companies looking to tap into the growing Asian market.

In other news, Florida governor proposes a ban on Central Bank Digital Currencies.