Hong Kong To Raise $100 Million To Fund Crypto Industry

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Hong Kong goals to regain its standing as a number one finance and crypto hub, and to this finish, home buyers have established the ProDigital Fund to boost $100 million.

Already having secured $30 million in commitments, the fund goals to succeed in its goal by the tip of this yr, driving the expansion of the digital asset business in Hong Kong.

ProDigital Fund To ‘Embrace’ Hong Kong And Its Insurance policies

The ProDigital Fund will concentrate on early-stage Web3 firms catering to the native market. The fund’s backers embrace notable funding companies in Asia, corresponding to Ben Ng, a associate at SAIF Companions, and Curt Shi, an skilled tech investor from China.

Sunwah Kingsway Capital Holdings and Golin Worldwide Group are the opposite buyers supporting the fund. Regardless of the reluctance of some buyers to put money into crypto initiatives, Shi has reported a clean fundraising course of.

The fund has attracted curiosity from buyers in China, Australia, Hong Kong, and Singapore, highlighting a rising curiosity in crypto and digital belongings within the area.

Shi talked about:

I imagine that Hong Kong will proceed to have a sure diploma of openness and suppleness. Whereas our portfolio and fund will embrace Hong Kong and its insurance policies, we’ll proceed to have a presence in Australia, Singapore, in addition to in Europe and the US.

The ProDigital Future Fund intends to broaden its operations past Hong Kong to incorporate Australia, Singapore, Europe, and america whereas sustaining a powerful dedication to Hong Kong and its insurance policies.

The fund has invested in six digital asset initiatives, together with GigaSpace, a metaverse firm, and One Future Soccer, a digital soccer league working in stealth mode from Australia.

Hong Kong Goals To Foster A Crypto-Pleasant Surroundings

To cope with the challenges witnessed by crypto firms whereas organising company banking accounts, the Hong Kong authorities have organized a gathering between these companies and bankers.

This initiative implies that Hong Kong is dedicated to bringing optimistic change throughout the house by supporting the sector and assuaging the monetary hurdles.

Moreover, Hong Kong-based crypto companies have seen curiosity from a number of Chinese language state-owned banks, such because the Financial institution of Communications, Financial institution of China, and Shanghai Pudong Improvement Financial institution.

These banks have initiated banking companies for these companies. In line with Hong Kong’s Secretary for Monetary Companies and the Treasury, greater than 80 firms throughout the digital asset business have expressed their want to arrange operations in Hong Kong ever since October 2022.

Hong Kong proposed its crypto regulation invoice in October 2022. On February twentieth, the Securities and Futures Fee revealed a licensing regime for the crypto exchanges to be carried out in June this yr.

It will require compliance with numerous rules corresponding to Know Your Buyer (KYC), Anti Cash Laundering Insurance policies (AML), Combating of Financing of Terrorism Guidelines (CFT), and protected asset custody.