Hong Kong Officials Advocate for Canadian Web3 Startups to Utilize ReadytoMove Tech Hub

Hong Kong Officials Pitch Offshore Tech Hub to Canadian Web3 Startups


Ruholamin Haqshanas
Last updated:
June 25, 2024 06:20 EDT
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2 min read


Hong Kong government representatives made an appearance at a tech conference in Toronto to present the city’s offshore technology hub catered to Canadian crypto and Web3 startups that are ready to move.
The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) joined forces to co-host an event at Collision 2024, as stated in an official press release.
During the event, Emily Mo, the director of Toronto ETO, emphasized Hong Kong’s startup-friendly regulations, such as lower taxes compared to Canada, and the city’s openness to collaborating with “pre-commercial specialist technology companies.”
Mo stated, “There is a creative mindset on Web3/virtual assets developments. Fintech, health technology, green technology and property technology, etc, are trending in Hong Kong and Asia these days.”
Businesses from Canada Operating in Hong Kong Enjoy Benefits
Canadian businesses operating in Hong Kong have the advantage of receiving both public and private funding.
The governments of Canada and Hong Kong have maintained a double tax agreement for over a decade to prevent double taxation and fiscal evasion concerning personal and corporate income taxes.
On June 22, Hong Kong Legislative Council member Johnny Ng Kit-Chong announced the establishment of a subcommittee on Web3 and virtual asset development to promote growth in Hong Kong.
The council seeks feedback on important aspects of Web3 policy development, including establishing a cohesive environment with robust and clear regulations that balance technical, legal, and regulatory frameworks.
Unlicensed Crypto Exchanges Closed in Hong Kong
Although Hong Kong is positioning itself as a crypto-friendly hub, the region experienced a series of crypto exchange closures in May.
On March 28, 2024, HKVAEX, suspected to be affiliated with Binance, withdrew its license application.
Subsequently, on May 14, IBTCEX, QuanXLab, and Huobi HK followed suit, followed by Gate.HK on May 22, OKX HK on May 24, and Bybit (Spark Fintech Limited) on May 31.
These withdrawals have left only 17 virtual asset trading platforms remaining on the application list, with a total of 11 companies having withdrawn or returned their license applications.
Recently, Hong Kong Legislative Council member Wu Shuo has criticized Hong Kong’s cryptocurrency licensing system, citing its impact on market confidence.
Wu attributed the withdrawals to the requirement imposed by the Hong Kong SFC, which requires applicants for virtual asset trading platform licenses to commit to not having mainland Chinese users in any region.
Meanwhile, Hong Kong has launched its first batch of ETFs focused on cryptocurrencies, marking potential competition for the popular Bitcoin products in the United States.
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