According to the Financial Services and Treasury Bureau report, the blockchain companies accounted for 39% of the 57 fintech companies that set up shop in Hong Kong last year. The rise in blockchain firms is due to the Hong Kong government’s favorable policies that have made blockchain a key focus in the country. Enterprise blockchain companies accounted for 45% of the new companies, and digital asset trading platforms, 27% of the new blockchain companies in Hong Kong in 2019.
Hong Kong government has taken a positive stance towards the crypto industry.
The blockchain firms’ share of the fintech startups in the Asian city Hong Kong had grown since 2018 when they accounted for 27% of the newcomers. The large number of blockchains that started in the city happened due to the positive stance the Hong Kong government has taken towards the industry. In addition to issuing regulatory clarity on the blockchain sector, the government has encouraged the growth of the industry through incentives.
In Hong Kong, blockchain professionals are eligible for bonus marks when they apply for the Quality Migrant Admission Scheme (QMAS). This program allows applicants to settle down in the city before they secure a job from local companies. This has attracted several experts from around the world in the blockchain industry.
Governments take a serious look at blockchain amid the pandemic.
The use cases of blockchain have proven to be life-saving in the ongoing global pandemic. The digital distributed ledger reduces the paperwork, which reduces the risk of people coming into physical contact with each other. The governments all around the world are now looking into the use cases of blockchain seriously. Earlier, The United States Senate proposed for remote voting amid the lockdown due to the COVID 19 pandemic. The Senate memo noted that the COVID-19 crisis had forced the US Congress to rethink its operations as in-person meetings have become restricted.