Hong Kong shows off crypto, Web3 prowess in Toronto

Hong Kong has put a strong case forward that it is one of the best destinations for Canadian crypto and Web3 startups at its most recent tech conference in Toronto. Co-hosted by multiple government entities, including StartmeupHK (SMUHK), Invest Hong Kong (InvestHK), the Hong Kong Economic and the Trade Office in Toronto (Toronto ETO), the event took place between June 17 and 20 at Collision 24.

The conference was an opportunity for Hong Kong to prove its commitment to a thriving crypto and web3 ecosystem. While highlighting the existing startup-friendly regulations, the director of Toronto ETO, Emily Mo, noted the potential Hong Kong holds as a crypto and Web3 destination"Hong Kong offers a vibrant venture capital sector with low tax rates and innovative rules such as rules to support the listing of pre-commercial specialist technology companies," she says. “There is a creative mindset on Web3/virtual assets developments. Fintech, health technology, green technology, property technology, etc., are trending in Hong Kong and Asia these days.” 

This growing adoption of Web3 and decentralized solutions may also potentially  bring about increased use of Web3 wallets to access DeFi applications on the Ethereum blockchain or 온라인 슬롯 머신 게임 that accept crypto to give online casino players greater anonymity when making deposits or in-game wagers.

From 2019 to 2023, the Collision Technology Conference has added about $189 million to Toronto’s economy. While it took place virtually in 2020 and 2021 because of the COVID-19 pandemic, the conference usually welcomes over 37,000 investors, entrepreneurs, start-ups and innovation and technology (I&T) professionals. In fact, it is North America’s fastest-growing I&T conference.

Still speaking on what Canadian entrepreneurs can access, Mo added that Hong Kong understands the unique needs of startups. In that light, the region has plans to provide support and a well-defined regulatory environment to encourage innovation while mitigating risks.

The lower tax rates mentioned in her speech are a major selling point for Hong Kong. Compared with Canada, the corporate tax rate is much lower in Hong Kong, making it an attractive destination for Canadian businesses. 

Mo also explained that Canadian businesses can apply for public and private funding in Hong Kong. Additionally, the double tax agreement that has existed between both countries for over ten years was designed to ensure a streamlined tax filing for Canadian companies in Hong Kong.

Indeed, Hong Kong offers a dynamic environment for blockchain, crypto and Web3 startups. This potential is especially promising when you consider that there has been an increase in venture capitalists, accelerators and incubators interested in these technologies. In fact, the city-state is planning on integrating crypto and Web3 with its traditional finance system. Because Hong Kong is actively exploring these, Canadian Web3 companies can expect a more inclusive and robust financial landscape.

Johny Ng KitChong, a member of the Hong Kong Legislative Council, shared on June 22 that a Subcommittee on Web3 and Virtual Asset Development had been formed in Hong Kong to encourage the creation of digital assets in the state. The council clearly stated that it is open to feedback on how to develop policies and regulations that ensure balanced legal, technical and regulatory Web3 frameworks.

Further reinforcing their commitment to working with Canadian startups, government-backed organizations like InvestHK and StartmeupHK would help foreign companies find working space, register and comply with regulatory regulations. Apart from its business appeal, Hong Kong is popular as a city because of its skilled workforce, technological infrastructure, vibrant environment and cultural diversity. As such, it’s an ideal destination for startups to stay creative and innovative.

When you consider how much was said about the value that Hong Kong promises to provide, you might wonder whether it’s an exaggeration t. However, testimonials of the successful establishment of businesses in Hong Kong are abundant. Several Canadian crypto and Web3 businesses that were launched much earlier have had many positive experiences to share about how suitable the city is for them.

For Canadian businesses looking to explore Web3 industries such as Decentralized Finance (DeFi), Metaverse and NFTs and online anonymous casinos, it’s important to choose the right tools to get started. Popular crypto wallets like Coinbase wallet, Trust Wallet,  MetaMask, Trezor and Ledger make it easy to store, manage and use digital assets. 

The efforts that Hong Kong is putting into transforming the Web3 landscape are substantial. By establishing clear regulations, flexible government policies and a growing tech community, this city will soon become a global leader in this field. Canadian startups that are genuinely interested in expanding their business are encouraged to consider tapping into the potential of the new market as soon as possible because, as they say, the earlier, the better.

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