Vitalik Buterin, Ethereum co-founder, has cautioned blockchain projects that are looking into expanding operations in Hong Kong to consider the region’s political and regulatory stability when it comes to crypto-friendly policies.
In October, the Financial Services and Treasury Bureau of the Special Administrative Region of China declared that restrictions on digital assets would be eased.
This allowed for trading of two crypto-related ETFs on the Hong Kong Stock Exchange. Afterwards, accelerator G-Rocket announced plans to assist 1,000 Web3 startups in launching businesses in Hong Kong within the following three year period.
In addition, the government has allocated $6.4 million for the development of the crypto industry. Mr. Buterin noted in his address during Web3 Transitions conference in Singapore that it is important for blockchain initiatives to have the certainty that the region will remain crypto-friendly for years to come.
He admitted to having little knowledge of the relationship between mainland China and Hong Kong.