Hong Kong Cyberport Grows to 270 Web3 Enterprises

Cyberport, Hong Kong’s government-owned tech hub, has expanded its network, now hosting over 270 Web3 firms.

Over the past 16 months, more than 120 new Web3 firms have joined Cyberport, highlighting Hong Kong’s ambition to establish itself as a leader in blockchain technology.

Cyberport’s Expansion Drives Growth in Web3 Enterprises

The Legislative Council (LegCo) of the Hong Kong Special Administrative Region released a discussion paper on Tuesday, revealing Cyberport’s progress in developing Web3 and crypto ecosystems.

Hong Kong’s $50 million allocation in the 2023–24 budget played a key role in expanding Cyberport’s Web3 network to over 270 firms.

Hong Kong’s Financial Secretary, Paul Chan Mo-Po, confirmed that over 150 Web3 firms were hosted by Cyberport in June 2023.

🚀 Exciting news:

Hong Kong's Cyberport is booming with over 270 Web3 firms rapidly establishing real-world blockchain applications! 🌟

This growth not only fosters innovation but also positions Hong Kong as a leading hub for the future of tech.

What are your thoughts on the… pic.twitter.com/ut3Pb1cF5j

— Black Pearl (@Black_pear1_1) November 20, 2024

Today, these firms represent founders from over 20 countries, including Japan, the United States, and India, alongside local innovators.

The addition of three blockchain unicorns has further cemented Cyberport’s status as a global hub for blockchain enterprises.

Beyond increasing its numbers, Cyberport focuses on practical applications of blockchain technology, with enterprises specializing in smart living, digital entertainment, fintech, and cybersecurity.

To strengthen its ecosystem, Cyberport is actively onboarding specialists in blockchain security, crypto wallets, and asset custody to strengthen collaborations within its network.

Hong Kong’s Licensing Efforts Accelerate Crypto Growth

Hong Kong’s crypto regulations are undergoing refinement as the city prepares to issue licenses for Virtual Asset Trading Platforms (VATPs) by the end of 2024.

According to Securities Futures Commission (SFC) CEO Julia Leung, 11 companies are already in the licensing pipeline, while 16 applicants await decisions.

This interest highlights Hong Kong’s emerging role as a regional crypto hub.

Matrixport, operating through its Hong Kong branch Flying Hippo Technologies, applied for a VATP license earlier this year.

Meanwhile, Hong Kong’s Monetary Authority (HKMA) recently warned that crypto firms falsely presenting themselves as banks could mislead consumers.

The central bank emphasized that using the term “bank” without proper licensing under Hong Kong’s Banking Ordinance is illegal.

Alert: Please be cautious about crypto firms which may have misused the word “bank”. Certain overseas crypto firms, in recent events in HK, were reported to have made the representation that the firm was a “bank” or offered card product as “bank card” on the firm’s website. pic.twitter.com/Va5ebhhbTI

— HKMA 香港金融管理局 (@hkmagovhk) November 15, 2024

The HKMA revealed two overseas-based crypto companies had recently made misleading claims.

One described itself as a bank, while the other promoted a product as a “bank card,” potentially deceiving customers into believing they were licensed entities.

In another development, Interpol recently issued “red notices” for two Hong Kong citizens involved in cryptocurrency-related crimes.

Wong Ching-kit, 30, and Mok Tsun-ting, 26, face charges of fraud, theft, and handling proceeds of crime.

The two allegedly promoted cryptocurrency investments and sold mining machines under false pretenses.